What's happening?
Taiwan is raising at least $4 billion through the Taiwan Electrical and Electronic Manufacturers' Association to build an industrial park in Texas. According to Bloomberg, the site is designed to bring together the many smaller suppliers that major manufacturers like TSMC and Foxconn depend on.
Why it matters
TSMC has already spent $165 billion on its Arizona site and committed a further $100 billion for four 2nm fabs. But the smaller firms in their supply chains lack the financial capacity to expand into the US on their own. The industrial park aims to fill that gap.
Government support
Taiwan's government said it will offer loan guarantees to companies operating on the land and support them in dealing with local and federal US officials on visas, permits and other documentation. Minister of Economic Affairs Kung Ming-hsin said the supply chain would also be open to American firms and local workers.
More than one site
Taiwan has secured a piece of land in Texas for the project but has not yet shared details. The government is not limiting itself to a single park, saying it is planning for "more than one" site costing between $2 billion and $4 billion each.
