Taiwan plans $4B Texas hub for AI, Nvidia suppliers

Taiwan reportedly plans to raise billions of dollars to develop industrial parks in the US that would build a base for a comprehensive supply chain for Nvidia Corp. NVDA and other AI hardware makers in the country.

The initiative is starting with a complex in Texas that would cost as much as $4B to build, Bloomberg reported, citing Taiwan’s Minister of Economic Affairs Kung Ming-hsin.

The facilities would help smaller suppliers that are essential to the operations of Nvidia’s NVDA main production partner, Taiwan Semiconductor Manufacturing Co. TSM, and AI server assemblers, including Foxconn Technology Group (HNHPF) (HNHPF) to set up shop in the US, Kung said.

The development comes as Quanta Computer (QUCCF) recently received approval to spend $973M to support assembling servers and peripheral equipment in Tennessee. And last month, Wistron WICOF was approved to spend $150M on a U.S. subsidiary that assembles circuit boards. It plans to spend another $146M to renovate a Texas plant.

Taiwan’s economy minister in September said Taiwanese companies are planning an additional $20B of investments in the U.S., driven by strong demand for AI applications and semiconductor products. The planned investment is separate from TSMC’s (TSM) U.S. expansion. The world’s largest contract chipmaker announced a further $100B investment in Arizona in July, bringing its total planned U.S. investment to $265B.

Nvidia NVDA relies on suppliers including TSMC TSM, SK hynix SKHY, Samsung…