THE CRUNCH
Taiwan is raising at least $4 billion through the Taiwan Electrical and Electronic Manufacturers' Association to build an industrial park in Texas, aimed at supporting the many smaller manufacturers that giants like TSMC and Foxconn rely on. Economic Affairs Minister Kung Ming-hsin said the goal is a long-term, sustainable supply chain that American firms and local workers can join, not just Taiwanese companies.
The plan exists because the big names can fund their own US expansion, but their smaller suppliers largely cannot. TSMC has already spent $165 billion on its Arizona site and committed a further $100 billion for four more 2nm fabs, while the smaller firms in its orbit lack the financial muscle to move to the US independently. Nvidia CEO Jensen Huang highlighted the role these companies play in the global AI supply chain during a keynote in Taipei earlier this year.
Support goes beyond land. The Taiwanese government will offer loan guarantees to companies operating in the park and help them navigate US visas, permits and other paperwork with local and federal officials. A specific Texas site has reportedly been secured, though the ministry has not disclosed details and says it will elaborate later.
Nor is this a one-park plan. Taiwan says it is planning more than one site, each costing between $2 billion and $4 billion. Kung also noted that American companies, including Elon Musk's Terafab, could tap into the prospective supply chain, though Taiwan will not hand over its technologies for vertical integration.