Taiwanese electronics manufacturers are planning to increase their investments in Texas, with potential announcements expected in May, coinciding with Donald Trump’s first 100 days in office. Richard Lee, chairman of the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA), revealed that several large server companies, especially those specializing in AI servers, are expected to announce expansions in Texas around May 10. This move is spurred by rising tariff threats from President Trump and a proactive approach from the Republican-led Texas government in attracting Taiwanese investments.

TEEMA, representing over 3,000 companies across various sectors like semiconductors, IT, and electronics, led a delegation of seven AI server manufacturers to the U.S. to explore land and tax issues. Texas is emerging as a preferred location for these firms as they accelerate their production plans in the U.S. Lee, the former chairman of Inventec Corp, noted that Trump’s return to the White House has expedited the relocation of supply chains to the U.S. He urged Taiwanese firms to make substantial investments in the U.S. this year to demonstrate Taiwan’s commitment to cooperation with the U.S. to the Trump administration.

Texas Governor Greg Abbott visited Taiwan in July of last year, announcing the opening of a state trade office in Taipei and signing an Economic Development Statement of Intent with Minister of Economic Affairs J.W. Kuo to strengthen economic ties with Taiwan. Lee and his TEEMA colleagues also visited Texas and met with Abbott to discuss relocating AI server production. While Taiwanese ODM companies dominate 90% of global server production, less than 15% is currently produced in North America, indicating significant potential for growth in U.S.-based production.

Foxconn, a major supplier to Apple and Nvidia, invested $33 million in November to acquire land and factory buildings in Harris County, Texas. Compal and Inventec, also considering expansions in the U.S., view Texas as a prime location. Despite threats of 100% tariffs on Taiwan-made chips, Taiwan Semiconductor Manufacturing Co (TSMC) held its first board of directors meeting in the U.S. but did not announce any new U.S. investments. The White House is reportedly seeking to renegotiate US CHIPS and Science Act awards, potentially delaying some semiconductor disbursements and reviewing projects awarded under the 2022 law.