Taiwan plans to put up to 4 billion dollars into Texas industrial park for AI suppliers
Smaller Taiwanese suppliers to Nvidia, TSMC and Foxconn are to produce together in the US. The Texas park would be the first of several.
Archive image · Photo: 經濟部 (Wirtschaftsministerium Taiwan) / Wikimedia Commons, Attribution (cropped and resized)
Taiwan is planning industrial parks in the United States for smaller suppliers to the AI hardware industry. The first is to be built in Texas and cost up to 4 billion dollars, Economic Affairs Minister Kung Ming-hsin told Bloomberg. Further parks are expected to cost 2 to 4 billion dollars each.
The target group is small and medium-sized firms that supply Nvidia, TSMC and Foxconn but can hardly afford their own factory in the US. According to reports, the capital is to be raised by the Taiwanese electronics industry association TEEMA; the government plans to help with credit guarantees as well as visas and land. The ministry has not yet officially confirmed the Texas site.
The plan forms part of Taiwan's commitments under the trade agreement with US President Donald Trump's administration: Taipei had pledged credit guarantees of up to 250 billion dollars for semiconductor investment in the US. TSMC will nonetheless continue to build far more plants in Taiwan itself, Kung said.