Taiwan plans $4bn Texas tech park to extend its AI supply chain

Taiwan is considering a privately funded industrial technology park in Texas to help smaller suppliers follow TSMC, Foxconn and other chipmakers into the US.

Taiwan is preparing to build its first industrial technology park in Texas, in a move designed to anchor more of the island’s artificial intelligence supply chain inside the United States, according to reporting by Bloomberg and Taiwanese media. The plan is aimed at making it easier for suppliers serving Nvidia, TSMC, Foxconn and other hardware makers to operate closer to their customers as demand for AI components accelerates.

Economics Minister Kung Ming-hsin said the first park would be in Texas and could cost as much as US$4 billion, with further sites also under consideration. According to Taiwan Plus, the model would rely on private capital, with government backing rather than direct state funding. Taiwan’s Ministry of Economic Affairs said the scheme is being developed jointly with the Taiwan Electrical and Electronic Manufacturers’ Association.

The parks are intended to host both Taiwanese and US firms, along with local workers, and to give smaller suppliers a way to establish a presence in America without shouldering the full burden of a standalone factory. Tom’s Hardware reported that the initiative is designed to support the many smaller manufacturers that sit behind the supply chains of TSMC and Foxconn, while also preserving Taiwan’s wider industrial influence as production becomes more geographically dispersed. The plan would also include government help with loan guarantees, visa and permit issues, and communications with US authorities, according to that report.

The timing reflects the continuing strain on capacity across the semiconductor sector. Biz Chosun reported in August that TSMC was expected to increase monthly 3-nanometre output to 180,000 wafers by the end of this year, with further expansion anticipated next year as AI and high-performance computing orders rise. A later report from the same outlet said TSMC’s 2-nanometre capacity is also set to grow, underlining how aggressively the company is expanding at the cutting edge of chip manufacturing.

Taiwanese technology executives have increasingly argued that the island must globalise more of its supply network to keep pace with worldwide AI demand. Taiwan Plus reported in September that TSMC senior vice-president Cliff Hou said the company was building fabs in Taiwan and abroad, while Foxconn chair Young Liu said domestic production alone could not meet demand. In that context, the Texas park appears to be part of a broader strategy: not a replacement for Taiwan’s chip ecosystem, but an extension of it into key overseas markets.

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