Key points
- Taiwan's first U.S. supplier park would be in Texas
- Suppliers to TSMC and Foxconn are the target
- Taiwan's ministry hasn't confirmed the Texas land
Taiwan plans to help private companies build U.S. industrial parks for smaller suppliers to Taiwan Semiconductor Manufacturing Co. (TSM) and AI server makers such as Foxconn. The first would be in Texas and could cost up to $4 billion, Economic Affairs Minister Kung Ming-hsin told Bloomberg News.
Kung said the parks would build a base in the U.S. for the supply chain behind Nvidia (NVDA) and other AI hardware makers. The interview was published on the evening of Oct. 15, and Taiwan's Ministry of Economic Affairs confirmed the outline on Oct. 16.
Private money, with government help
The ministry said private companies would fund the parks, and the government would assist, Taiwan's Central News Agency reported. Each park would cost $2 billion to $4 billion. The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), an industry group, would raise the money.
The government's part would be loan guarantees, plus help dealing with U.S. federal and local officials on visas and land, Kung said. Under its trade agreement with Washington, Taiwan committed earlier this year to $250 billion in credit guarantees to support semiconductor investment in the U.S.
Texas is the proposed first site
Kung said the government plans more than one U.S. site. Taiwan has reportedly secured land in Texas for the first park. The ministry didn't confirm that and said it would give details at an appropriate time.
Foxconn chairman Young Liu, who also chairs TEEMA's supervisory committee, has named Arizona, Texas, Mexico, Poland, and India as possible locations for overseas parks.
The Texas plan follows TSMC's own spending in the U.S. The chipmaker has committed $265 billion to Arizona and is weighing a chipmaking campus in Texas. Foxconn, which builds AI servers for Nvidia, posted record September sales of NT$1.16 trillion.
How the stocks moved
In Taipei on Oct. 16, Foxconn, listed as Hon Hai Precision Industry, rose 1.9% to NT$244. TSMC fell 0.8% to NT$2,420. In U.S. premarket trading at 7:57 a.m. ET, Nvidia was at $217.00, little changed from its Oct. 15 close of $217.23.
Kung said the goal is a long-term supply chain in the U.S. that American companies and workers can take part in.
