Texas: 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.
According to Focus Taiwan, with U.S. President Donald Trump's "Made in America" agenda and high tariffs on imports, more firms are choosing Texas as a U.S. base, insiders said. Chen Shih-hsiu, head of the Taiwanese Chambers of Commerce in North America, noted that most Taiwanese firms are clustered in Houston and Dallas. Major investments include GlobalWafers, Delta Electronics, and System Electronics.
Dallas is particularly attractive, Chen explained, because of its diverse industries, strong supply chains, and location at the center of North America. Additionally, tax-free trade under the Agreement between the United States of America, the United Mexican States, and Canada (USMCA) also adds to its appeal.
Texas data reveals that 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 Foxconn, Compal, Quanta, Wistron, and Pegatron have already set up operations in Texas. Chen added 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 AI and space technology. For example, Taiwan-based Phison Electronics is working with local partners to develop the world's first data center in space. Houston serves as a hub for space industries, and storing sensitive data in orbit avoids geopolitical risks, according to Phison's U.S. chief executive Wu Tsung-cheng. He called it a rare chance for Taiwanese firms to join America's cutting-edge technology industry development.
With companies like Tesla, AMD, HP, and Dell already in Texas, Wu noted that the state is becoming a tech magnet despite uncertainty over U.S. tariff policy. However, costs are rising quickly. Texas accounts for 36 percent of U.S. semiconductor manufacturing, but rapid growth has pushed up wages, housing, and property taxes. "Salaries here are now close to California levels," warned Wang Rong-bang, head of Taiwan-based TECO Electric and Machinery Co.'s automation division.
Taiwanese companies aiming to establish a U.S. presence must adapt, said IntelliEPI Chairman Kao Yung-chung. He emphasized that investing in the U.S. will always be more costly and take longer than in Taiwan. "Taiwanese firms need to treat their U.S. operations as American companies, not just extensions of Taiwan," Kao advised, adding that it is unrealistic if companies expect to bring all their personnel from Taiwan.