Taiwan is raising at least $4 billion through the Taiwan Electrical and Electronic Manufacturers' Association to build an industrial park in Texas, according to a report from Tom's Hardware. The site is meant to host the many smaller manufacturers that supply major chipmakers like TSMC and Foxconn, giving them a base near their largest customers' U.S. operations.
TSMC has already spent $165 billion on its Arizona fab and committed another $100 billion for four more 2nm fabs, but the smaller companies in its supply chain lack the financial resources to expand overseas on their own. Taiwan's Minister of Economic Affairs, Kung Ming-hsin, said the project will establish a "long-term, sustainable supply chain" that American firms and local workers can also join. The government plans to provide loan guarantees and help companies navigate U.S. visa, permit, and documentation processes.
Taiwan has secured land in Texas but has not disclosed details, and it is planning for "more than one" site, each costing between $2 billion and $4 billion. American companies are welcome to participate, and Kung noted that Elon Musk's Terafab could benefit from the supply chain, though Taiwan will not transfer technologies to enable vertical integration. The U.S. government has not commented on the plan, which follows what Taiwan calls the "Taiwan model" for easing its companies' investments in America and shortening the AI semiconductor supply chain. Nvidia CEO Jensen Huang has previously highlighted the critical role these smaller suppliers play in the global AI ecosystem.```json {