Taiwan is set to invest up to $4 billion in developing industrial parks in the U.S., starting with a project in Texas. The initiative aims to bolster the supply chain for artificial intelligence hardware manufacturers, particularly supporting companies like Nvidia (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Co (TSMC), and Foxconn.
Taiwan's Economy Minister Kung Ming-hsin announced the plan on October 12, stating that the parks will help smaller Taiwanese suppliers establish operations in the U.S. The government is collaborating with the Taiwan Electrical and Electronic Manufacturers' Association to secure funding, while also offering loan guarantees and regulatory assistance.
The move comes amid pressure on Taiwan to fulfill investment commitments under its trade deal with Washington and mitigate geopolitical risks stemming from tensions with China. TSMC has already pledged $265 billion for U.S. expansion, and Foxconn is also scaling up production capacity to meet growing demand for AI infrastructure.