Taiwan Plans Up to $4 Billion Texas Industrial Park for Nvidia's Suppliers

Taiwan is thinking big about Texas. Bloomberg reported that Taipei plans to raise billions of dollars for US industrial parks that would anchor a full supply chain for Nvidia and other AI hardware makers. The first is a Texas complex costing as much as $4 billion, according to Economic Affairs Minister Kung Ming-hsin.

There will be more than one. CNA reports each park is estimated at $2 billion to $4 billion. They are meant to help smaller suppliers to TSMC, Nvidia's main production partner, and server assemblers like Foxconn set up in the US. Taipei says it will back them with loan credit guarantees and help with local and federal officials on visas and land. People familiar with the matter told CNA that Taiwan has already acquired land in Texas. The ministry says it will clarify at an appropriate time.

Who pays? Headlines say Taiwan will fund it, but the ministry describes a model where businesses raise the money, working with the electronics manufacturers' association TEEMA, and the government assists. Earlier this year, under a US-Taiwan trade agreement, Taiwan pledged $250 billion in credit guarantees for US semiconductor supply chain investment.

The backdrop: TSMC has pledged $265 billion for its US expansion, and Foxconn and Wistron are scaling up American capacity too.

My take: a supply chain with a Lone Star address, government credit support and a minister making the announcement. Splendid.