Boosting its US ties, Taiwanese tech giants are rumoured to announce major investments in Texas, expected by May 2025, eyeing major AI growth.
Taiwanese electronics companies are reportedly gearing up to announce increased investments in Texas, with possible declarations in May to coincide with President Donald Trump’s first 100 days in office.
This was recently disclosed by Richard Lee, Chairman of the Taiwan Electrical and Electronic Manufacturers’ Association. The investments, particularly from large server companies focused on AI servers, are expected to expand, with Texas emerging as a key hub.
Lee highlighted that Texas, led by a Republican government, has been proactive in attracting Taiwanese companies.
Despite Trump’s criticism of Taiwan for taking US semiconductor business and his threats to impose tariffs on countries with large trade deficits, Taiwan’s commitment to investing in the States remains strong.
Taiwanese President Lai Ching-te recently pledged more investment in the US, focusing on Texas, a state where many Taiwanese companies already have a presence. However, previous factories have not been large enough to keep up with the growing demand for AI-related businesses, presenting an opportunity for expansion.
Foxconn, the world’s largest contract electronics manufacturer, is one of the companies increasing its American presence. In November, it revealed that one of its subsidiaries had invested $33 million in land and factory buildings in Harris County, Texas.
Similarly, Taiwanese contract laptop manufacturers Compal and Inventec, which also produce AI servers, are considering expanding into Texas.
Although, as per the Economic Times, Inventec has not confirmed any upcoming announcements regarding investment in Texas, and both Foxconn and Compal have not responded to inquiries, the trend towards expansion is clear.
