Taiwan is establishing an industrial park in the United States to strengthen the supply chain for American artificial intelligence (AI) companies, including NVIDIA. The initiative aims to support small and medium-sized enterprises (SMEs) in entering the U.S. market, creating a local supply chain that encompasses everything from semiconductors to AI server components.
In an interview with Bloomberg on October 12, Taiwan's Economy Minister Wang Mei-hua revealed that the cost of developing the first industrial park in Texas is expected to reach up to $4 billion.
The Taiwanese government is collaborating with the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) to advance this project, with the association responsible for securing the necessary funding for the industrial park's development.
Wang stated, "By establishing this industrial park, we aim to create a long-term and sustainable supply chain in the U.S., allowing participation from both Taiwanese and American companies, as well as local workers."
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, is a key production partner for NVIDIA. Taiwanese companies Foxconn and Wistron assemble servers supplied to AI firms like NVIDIA. These major corporations rely on numerous suppliers for components such as semiconductor packaging substrates and cooling modules.
However, unlike large companies like TSMC and Foxconn, smaller suppliers may lack the financial resources to establish production facilities in the U.S. This is why the Taiwanese government is working to support these SMEs by creating the industrial park.
The Taiwanese government plans to offer loan guarantees to companies wishing to move into the industrial park and will assist in negotiations with local and federal U.S. governments on matters such as visa issuance and land acquisition.
Reports indicate that the Taiwanese government has already secured land for the Texas industrial park. Texas has recently emerged as a key investment destination for Taiwanese companies, particularly as Foxconn and Wistron expand their operations there. TSMC also announced on October 15 that it is considering Texas as a new investment location in the U.S.
This initiative by the Taiwanese government is seen as a move to fulfill investment commitments made in a trade agreement with the U.S. earlier this year while also reducing the geopolitical risks faced by its technology firms amid rising U.S.-China tensions. Bloomberg reported that establishing a supply chain in the U.S. has become an urgent task for Taiwan.
* This article has been translated by AI.
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