Taipei: Inventec Corp., a major player in Taiwan's contract electronics manufacturing sector, is actively seeking to establish a production site in Texas. This initiative comes at a time when U.S. President Donald Trump has implemented trade tariffs that impact the electronics industry.
According to Focus Taiwan, Inventec announced plans to identify a suitable location in Texas with a reliable electricity supply, aiming to commence factory construction in the latter half of the year. The proposed facility will focus on assembling motherboards using components imported from Taiwan, marking a strategic move to expand its manufacturing footprint in the U.S.
Inventec is among several Taiwanese electronics suppliers considering or executing plans to set up operations in the U.S. following Trump's executive orders imposing a 25 percent tariff on goods from Canada and Mexico and increasing tariffs by 10 percent on imports from China. Although Trump temporarily paused tariff threats against Canada and Mexico, the new tariffs on China have already been enacted.
Despite the anticipated increase in production costs by up to 30 percent, Inventec views the expansion as essential to meet the demands of its American clients. In the interim, the company plans to supply the U.S. market from its facilities in the Czech Republic and Thailand, which remain unaffected by the U.S. tariffs.
Meanwhile, Wistron Corp., another leading Taiwanese contract electronics manufacturer, confirmed it has existing facilities in Texas and California and can adjust production to meet client needs. Compal Electronics, Inc., also based in Taiwan, is exploring U.S. investment opportunities, particularly in southern states like Texas, which boasts an independent electricity grid.
In response to the new tariffs, Taiwan's Ministry of Economic Affairs (MOEA) has committed to assisting affected Taiwanese companies. Plans include establishing an investment and trade center in Texas to serve as a liaison with state governments, facilitating Taiwanese business operations in the U.S. These centers are part of a broader strategy to enhance investment cooperation with states that have formal agreements with Taiwan, with Texas being a primary focus.