Texas Emerges as Prime Investment Destination for Taiwanese Tech Giants

Major electronics companies announce billions in expansions as "Made in America" agenda drives manufacturing shift.

Taiwanese technology companies are pouring billions of dollars into Texas manufacturing facilities as they respond to President Trump's trade policies and position themselves for the artificial intelligence boom, making the Lone Star State the epicenter of a significant shift in global electronics production. The investment surge, led by major contract manufacturers such as Foxconn, Inventec, and Compal Electronics, reflects Taiwan's strategic pivot to establish substantial U.S. operations amid rising tariffs and concerns about supply chain security.

Texas data reveals that Taiwanese firms have announced 15 projects in the state over the past decade, totaling nearly $11.2 billion and creating 3,550 jobs, according to Focus Taiwan. The momentum has accelerated dramatically in 2025, with major announcements expected throughout the year as companies adapt to Trump's "Made in America" agenda.

AI Server Demand Drives Manufacturing Boom

The artificial intelligence revolution has emerged as a primary driver of Taiwanese investment in Texas, with companies positioning themselves to serve surging demand from American technology giants. Inventec announced in April a $85 million investment to establish a server assembly plant in Texas, joining fellow Taiwanese original design manufacturers (ODMs) that have already committed to major U.S. expansions.

Richard Lee, chairman of the Taiwan Electrical and Electronic Manufacturers' Association, stated that companies specializing in AI servers plan to scale up their operations in Texas significantly. "This is an exciting opportunity for the U.S. and Taiwan, as we expect an increase in investments that will not only create jobs but also enhance the overall trade partnership between both nations," Lee explained at a Taipei event.

The expansion reflects the growing importance of AI infrastructure, with Taiwanese companies that manufacture servers for major U.S. tech companies recognizing the need for domestic production capabilities. Companies like Foxconn, which produces components for Nvidia and Apple, are leading this charge with substantial investments in their facilities.

Strategic Advantages Draw Taiwanese Investors

Chen Shih-hsiu, head of the Taiwanese Chambers of Commerce in North America, identified Dallas as particularly attractive due to its diverse industries, strong supply chains, and central North American location. The city's location enables companies to benefit from tax-free trade under the U.S.-Mexico-Canada Agreement (USMCA), adding significant appeal for manufacturers serving the continental market.

Texas offers Taiwanese companies several competitive advantages, including no state income tax, cheap land, and strong transportation links. The state's robust energy infrastructure, including its independent electrical grid, provides additional security for energy-intensive manufacturing operations.

"Texas is a leading candidate just because of the power that they've done. Samsung is putting a giant fab in, and that's created a lot of extra power and infrastructure there. Texas is the only state in the U.S. that has its own grid." — Anthony Peter Bonadero, Compal President and CEO

Major Players Establish Texas Foothold

Electronics giants, including Hon Hai Precision Industry (Foxconn), Compal Electronics, Quanta Computer, Wistron Corporation, and Pegatron Corporation, have already established operations in Texas, with suppliers of components such as screws and plastics also considering entry. Foxconn alone has invested $33 million in land and buildings in Harris County, positioning itself for significant expansion.

Beyond traditional electronics manufacturing, Taiwanese companies are exploring cutting-edge applications. Phison Electronics Corp. is working with local partners to develop what would be the world's first data center in space, leveraging Houston's position as a hub for the space industry. This innovation aims to store sensitive data in orbit to avoid geopolitical risks.

Michael Wu, president of Phison Technology USA, described this as "a rare chance for Taiwanese firms to join America's cutting-edge technology industry development," highlighting how Texas is becoming a gateway for advanced technology partnerships.

Government Support Facilitates Investment

The Taiwan government has responded to increasing corporate interest by announcing plans to establish investment and trade centers in Texas and other U.S. locations. The Taiwan Ministry of Economic Affairs stated these centers will serve as links between expanding Taiwanese companies and government support services.

These trade centers are designed to help Taiwanese investors access assistance and connect with potential U.S. partners, particularly important for companies relocating production from countries affected by the Trump administration's tariff policies. The initiative supports over 300 Taiwanese companies with production facilities in Mexico that face new 25% tariffs under recent executive orders.

Rising Costs Present Challenges

Despite Texas's attractions, Taiwanese investors face significant cost pressures as the state's rapid growth drives up wages and living expenses. Wang Jung-bang, president of Teco Electric & Machinery's green mechatronic solution business group, noted that "salaries here are now close to California levels".

The semiconductor boom has had a particularly significant impact on costs, with Texas accounting for 36% of U.S. semiconductor manufacturing. Housing prices and property taxes have risen substantially as the state attracts substantial investments from companies like Samsung and Texas Instruments, which announced a $60 billion expansion across seven U.S. fabs.

Intelligent Epitaxy Technology chairman Kao Yung-chung acknowledged that "investing in the U.S. will always be more costly and take longer than in Taiwan," necessitating that companies adapt their business models for American operations.

Part of Broader U.S.-Taiwan Tech Alliance

The Texas investment wave represents part of a broader strengthening of U.S.-Taiwan technology relationships. Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to invest $100 billion in U.S. operations, including the construction of five additional factories, during a meeting with President Trump at the White House in March.

This follows TSMC's earlier commitment to increase its Arizona investment from $40 billion to $65 billion, demonstrating Taiwan's strategic commitment to U.S. semiconductor independence. The investments align with the CHIPS and Science Act's $280 billion initiative to revitalize American chip manufacturing.

Texas Positions Itself as Tech Hub

The convergence of Taiwanese investment with existing U.S. technology giants creates a robust ecosystem in Texas. Companies like Tesla, Advanced Micro Devices, HP, and Dell Technologies already have substantial Texas operations, making the state "a tech magnet despite uncertainty over U.S. tariff policy," according to Michael Wu.

Combined public-private investment in Texas semiconductor manufacturing now exceeds $50 billion, with major facilities from Samsung, Texas Instruments, and a now-growing Taiwanese presence creating a comprehensive technology cluster.

Sustained Growth Expected

Industry observers anticipate that the Taiwanese investment wave in Texas will continue throughout 2025 and beyond, driven by both trade policy pressures and genuine economic opportunities in AI and advanced manufacturing. The combination of established infrastructure, a favorable business climate, and a strategic location positions Texas as the natural destination for Asian technology companies seeking substantial U.S. operations.

As global supply chains continue evolving amid geopolitical tensions, Texas's emergence as a primary destination for Taiwanese tech investment reflects broader trends toward regional manufacturing and the critical role of semiconductor and electronics production in national security strategies. The success of these investments is likely to influence future decisions by Asian technology companies regarding U.S. market entry and expansion strategies.