Taiwan plans multiple US industrial parks to build local AI supply-chain ecosystem
Economics Minister Kung Ming-hsin says the project will follow an industry-funded, government-supported model, with the first park planned for Texas; its scale and timeline have yet to be announced.
The government is planning to establish multiple industrial parks in the United States to help Taiwanese small and medium-sized suppliers expand there and build a more complete supply chain for AI servers and semiconductor-related industries. The project is expected to begin in Texas, reflecting the further expansion of Taiwan-US economic and trade cooperation into industrial clusters and manufacturing support systems.
According to a Central News Agency report, Economics Minister Kung Ming-hsin told Bloomberg that the parks would help suppliers linked to companies including Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry establish factories in the United States. The aim is to create a long-term, sustainable supply chain that allows US companies and local workers to participate as well.
Kung said the project would initially focus on one park in Texas and be promoted jointly by the government and the Taiwan Electrical and Electronic Manufacturers’ Association under an “industry-funded, government-supported” model. Construction costs for each park are estimated at about US$2 billion to US$4 billion, and the plan envisions more than one park in the future.
The US State Department told the Central News Agency that the deepening and expanding trade and investment relationship between the United States and Taiwan helps advance US interests and create economic opportunities. However, the industrial parks remain in the planning and development stage, with the actual investment scale, participating companies and construction schedule still to be announced.
As demand for AI servers grows, the United States is seeking to expand domestic manufacturing and supply-chain resilience. Taiwanese companies, meanwhile, are weighing the need to be closer to customers, diversify geopolitical risks and control operating costs. If the park project moves forward, it could provide Taiwanese small and medium-sized component and equipment suppliers with a channel for expansion in the United States.
Establishing factories overseas, however, also involves costs related to land, labor, energy, logistics and regulations. Whether Taiwanese suppliers can remain cost-competitive in the United States, and whether the parks can attract enough companies to form viable industrial clusters, will be key to the project's effectiveness.