Taiwan Plans Texas Supplier Park That Could Cost Up to $4 Billion

Taiwan is preparing a Texas industrial park that could cost up to $4 billion, aiming to help smaller chip and AI-server suppliers establish U.S. operations alongside major manufacturers.

Texas would be the first of multiple U.S. sites under consideration, with each park estimated at $2 billion to $4 billion. The proposed complexes would serve smaller suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC) and AI-server assemblers such as Foxconn. Their products include chip-packaging substrates and cooling modules used in AI data centers.

Private businesses would finance the parks, with the government providing assistance. The ministry also plans to work with the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA). Project-specific financing arrangements have not been detailed.

Minister of Economic Affairs Kung Ming-hsin discussed the plan in an Oct. 12 interview, describing a goal of building “a long-term, sustainable supply chain” that can include U.S. companies and local workers. Kung also outlined proposed loan guarantees and coordination with U.S. federal and local officials on visas and land.

Earlier groundwork includes a May 6 memorandum of understanding between the ministry and TEEMA to promote overseas industrial clusters. A preliminary survey identified about 20 Taiwanese companies interested in U.S. investment totaling roughly $35 billion. Those figures represent expressions of interest, not completed investments.

Separately, a wider U.S.-Taiwan economic framework envisages $250 billion in private enterprise investment and government-backed credit guarantees that could enable up to $250 billion in corporate financing. Those amounts have not been identified as allocations for the Texas park.

In a separate project, TSMC’s planned $265 billion U.S. expansion includes four additional advanced fabrication plants. The proposed Texas park focuses on suppliers serving the chip and AI-server industries. No Texas parcel, construction start date or tenant list has been identified.