Taiwan is planning to establish multiple industrial parks across the United States to strengthen the artificial intelligence (AI) hardware supply chain and support Taiwanese manufacturers expanding their American operations, Bloomberg News reported Friday.
Each industrial complex could require investments of up to $4 billion, according to Taiwan's Economy Minister Kung Ming-hsin, who outlined the initiative in an October 12 interview with Bloomberg.
The first industrial park is expected to be developed in Texas, marking an important step in Taiwan's efforts to expand its manufacturing presence in the United States.
The project will primarily help smaller Taiwanese suppliers establish production facilities and operations in the U.S., allowing them to work more closely with major technology manufacturers, including Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn.
TSMC, a key manufacturing partner of Nvidia, plays a central role in producing advanced semiconductors used in AI applications. Foxconn, meanwhile, is a major assembler of servers and other hardware supporting the rapidly expanding AI infrastructure market.
Taiwan's government will collaborate with the Taiwan Electrical and Electronic Manufacturers' Association, which will be responsible for securing funding for the industrial parks.
Authorities also plan to provide loan guarantees and regulatory assistance to help Taiwanese companies navigate U.S. federal and local requirements, reducing potential barriers to overseas expansion.
The initiative comes as Taiwan seeks to fulfill investment commitments under its trade agreement with Washington while addressing geopolitical risks associated with ongoing tensions with China.
Expanding manufacturing operations in the United States could help Taiwanese technology companies diversify production locations and improve supply chain resilience amid growing global demand for AI chips, servers, and data center equipment.
Major Taiwanese manufacturers have already announced significant U.S. investments. TSMC has committed $265 billion toward expanding its American operations, while Foxconn and Wistron are increasing their manufacturing capacity to meet rising demand for AI-related infrastructure.
The proposed industrial parks could further strengthen cooperation between Taiwan and the United States in semiconductor manufacturing and advanced technology production.
By supporting smaller suppliers alongside established industry leaders, Taiwan aims to build a more integrated U.S.-based AI hardware supply chain while reinforcing its position in the global technology industry.
