Taiwanese electronics firms plan Texas investments amid Trump trade stance

Major Taiwanese electronics manufacturers consider expanding operations in Texas, with investment announcements expected in May.

The flags of Taiwan and the United States are displayed on a table in Taipei, Taiwan, on March 27, 2018. Photo by Tyrone Siu/Reuters

By Alana Salsabila and Widya Putri

Taiwanese electronics companies are preparing to expand their investments in Texas, with announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Industry leaders indicate that firms specializing in AI server production are planning significant expansion in response to rising demand and geopolitical trade shifts.

The potential investments come as Trump continues to criticize Taiwan for taking U.S. semiconductor business. His administration has also threatened to impose tariffs on key trading partners, including Taiwan, in an effort to address trade deficits. Meanwhile, Taiwanese President Lai Ching-te has pledged increased investment in the United States, signaling stronger economic ties despite mounting trade tensions.

Texas emerges as a key destination for Taiwanese investment

Richard Lee, chairman of the Taiwan Electrical and Electronic Manufacturers' Association, highlighted Texas as a prime destination for new investments from Taiwanese electronics firms. Speaking at an industry event in Taipei, Lee emphasized the proactive approach of Texas' Republican-led government in attracting foreign investment, particularly from Taiwan’s technology sector.

"We expect that this year, especially in the first 100 days of Trump's presidency—around May 10—many of our large AI server companies will announce expansions in Texas," Lee said, without specifying which firms would be involved.

While many Taiwanese companies already operate manufacturing facilities in Texas, Lee noted that existing plants were not built to accommodate the rapid expansion of AI-related industries. The push for new investments reflects the growing need for larger, more advanced facilities capable of supporting increased demand for AI servers and other high-tech products.

Foxconn and other major players eye Texas expansion

Among the Taiwanese firms actively investing in the U.S., Foxconn, the world's largest contract electronics manufacturer and a key supplier to Apple and Nvidia, has already made significant moves in Texas. In November, a Foxconn subsidiary acquired land and factory buildings in Harris County for $33 million, signaling the company’s commitment to expanding its U.S. operations.

Taiwanese contract laptop manufacturers Compal and Inventec, both of which produce AI servers, have also explored the possibility of expanding in the United States. Texas remains one of their top locations for potential growth, company executives said last month.

Political and economic factors influencing investments

The surge in Taiwanese investment interest in Texas is partly driven by Trump's aggressive trade policies. Since taking office, Trump has threatened to impose tariffs on key trading partners, including Taiwan, in an effort to bring semiconductor production back to the U.S. He has also criticized the country for allegedly taking American jobs in the tech sector.

Taiwan’s government has responded by increasing its commitment to investing in the U.S. economy. Last week, President Lai Ching-te reaffirmed his support for Taiwanese companies looking to expand their American footprint, particularly in manufacturing and high-tech industries.

Industry analysts suggest that by expanding operations in Texas, Taiwanese firms aim to mitigate potential trade risks while strengthening ties with the U.S. market. Establishing local production facilities could help companies avoid punitive tariffs and position them closer to key customers, including major American tech firms.

AI-driven growth fuels demand for U.S. expansion

The rapid rise of artificial intelligence has created new opportunities for Taiwanese electronics manufacturers. As AI applications continue to evolve, companies specializing in AI servers and related hardware are seeing unprecedented growth.

"The AI server market is expanding at an extraordinary rate, and companies are racing to scale up their production capabilities," said an industry expert familiar with Taiwanese tech investments. "Texas, with its business-friendly policies and existing tech infrastructure, is a logical choice for expansion."

Texas has become a major hub for semiconductor and electronics manufacturing, attracting global investment due to its favorable tax policies, skilled workforce, and strong logistics network. The state’s central location also provides easy access to major tech companies in Silicon Valley and other parts of the U.S.

Industry players remain tight-lipped on official announcements

While speculation about Taiwanese investments in Texas continues to grow, some companies have remained tight-lipped about their plans.

Inventec declined to comment on whether it would announce new Texas investments in May. Foxconn and Compal have also not responded to inquiries regarding their expansion strategies.

Despite the lack of official confirmation, industry observers believe that several major Taiwanese firms will unveil their investment plans in the coming months, aligning with Trump’s push for increased U.S. manufacturing.

The future of Taiwanese investment in the U.S.

As trade tensions between the U.S. and Taiwan continue to evolve, Taiwanese electronics manufacturers face both opportunities and challenges. While increased investment in Texas could help mitigate tariff risks and strengthen relationships with U.S. customers, companies must also navigate complex regulatory and economic conditions.

For now, all eyes are on May, when major AI server firms are expected to announce their expansion plans in Texas. With growing demand for AI technology and geopolitical factors shaping trade policy, Taiwanese investment in the U.S. is likely to remain a key issue in the months ahead.