Texas is emerging as a key hub for global technology and manufacturing, attracting major Taiwanese companies, but rising wages and living costs are creating steep hurdles for investors, local businesses told CNA recently.
With US President Donald Trump’s “Made in America” agenda and high tariffs on imports, more firms are choosing Texas as a US base, insiders said.
Chen Shih-hsiu (陳世修), head of the Taiwanese Chambers of Commerce in North America, said that most Taiwanese firms are clustered in Houston and Dallas. Major investments include GlobalWafers Co (環球晶圓), Delta Electronics Inc (台達電子) and Sysgration Ltd (系統電子).
Photo: CNA
Dallas is particularly attractive, Chen said, because of its diverse industries, strong supply chains, and location at the center of North America.
Free trade under the US-Mexico-Canada Agreement (USMCA) also adds to its appeal, he said.
Texas data shows Taiwanese firms have announced 15 projects in the state over the past decade, totaling nearly US$11.2 billion and creating 3,550 jobs.
Electronics giants such as Hon Hai Precision Industry Co (鴻海精密), Compal Electronics Inc (仁寶電子), Quanta Computer Inc (廣達電腦), Wistron Corp (緯創) and Pegatron Corp (和碩) have already set up operations in Texas, Chen said, adding that suppliers of screws and plastics are also considering entry, drawn by cheap land, strong transport links, and no state income tax.
Beyond manufacturing, Texas is gaining ground in artificial intelligence (AI) and space technology. For example, Phison Electronics Corp (群聯電子) is working with local partners to develop the world’s first data center in space.
Houston is a hub for space industries, and storing sensitive data in orbit avoids geopolitical risks, Phison Technology Inc (USA) president Michael Wu (吳宗誠) said, calling it a rare chance for Taiwanese firms to join America’s cutting-edge technology industry development.
With Tesla Inc, Advanced Micro Devices Inc, HP Inc and Dell Technologies Inc already in Texas, Wu said the state is becoming a tech magnet despite uncertainty over US tariff policy.
Still, costs are rising quickly. Texas accounts for 36 percent of US semiconductor manufacturing, but rapid growth has pushed up wages, housing prices and property taxes.
“Salaries here are now close to California levels,” Teco Electric & Machinery Co (東元電機) green mechatronic solution business group president Wang Jung-bang (王榮邦) said.
Taiwanese companies aiming to establish a US presence must adapt, said Intelligent Epitaxy Technology Inc (英特磊) chairman Kao Yung-chung (高永中), as investing in the US will always be more costly and take longer than in Taiwan.
“Taiwanese firms need to treat their US operations as American companies, not just extensions of Taiwan,” and it is unrealistic if companies expect to bring all their personnel from Taiwan, he added.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
RSS