Taiwan raising $4 billion to build industrial park in Texas to support US chipmaking supply chain
This $4 billion industrial park would make it easier for smaller Taiwanese companies who can't afford to build their own sites in the U.S. to expand and follow major Taiwanese manufacturers like TSMC and Foxconn.
Taiwan is planning to raise up to $4 billion to construct an industrial park in Texas, aiming to bolster the nation's chipmaking supply chain. The Taiwan Electrical and Electronic Manufacturers' Association is funding the project, which will cater to the smaller manufacturers that support major players like TSMC and Foxconn. Taiwan's Minister of Economic Affairs, Kung Ming-hsin, expressed his intention to establish a sustainable supply chain with American firms and local workers, rather than solely relying on Taiwanese companies.
Major Taiwanese firms have demonstrated their willingness to invest heavily in the U.S., with TSMC having already spent $165 billion on its Arizona facility and committing an additional $100 billion for four more 2nm fabs. While Nvidia CEO Jensen Huang highlighted the importance of these smaller companies in the global AI supply chain, the Taiwanese government intends to provide loan guarantees and support for communication with U.S. officials regarding visas, permits, and documentation.
The project is expected to span across multiple sites in Texas, with each costing between $2 billion and $4 billion. Although the U.S. government has not commented on the plan, this investment aligns with the "Taiwan model" and could help shorten the AI semiconductor supply chain that depends on Taiwanese industry. Notably, American companies like Elon Musk's Terafab are encouraged to participate in this supply chain, though they will not receive the technology to integrate vertically.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
