In response to Trump's tariff policies, Taiwanese electronics manufacturing giants like Inventec, Foxconn, and Wistron have strategically established factories in Texas.

Taiwan • Business • 04/29 19:02
In response to Trump's tariff policies, Taiwanese electronics manufacturing giants like Inventec, Foxconn, and Wistron have strategically established factories in Texas.

Major Taiwanese electronics contract manufacturers such as Inventec, Foxconn, Wistron, Wiwynn, Quanta, and Compal have responded to the high tariff policies of former U.S. President Trump by establishing or expanding their operations in the United States, with Texas becoming the preferred location. These companies' investments reflect their focus on the U.S. market and their quick adaptability to the restructuring of the global supply chain. Texas attracts Taiwanese investment with its vast land, stable electricity supply, and low taxes, and could become a major hub for Taiwan's electronics manufacturing industry in the U.S.

Key Updates

04/30 07:05

S&P Global: The trade war will not affect the credit ratings of the US and China in the short term. According to S&P Global, following Trump's tariff hikes, the US rating remains stable, while China's rating has been downgraded by Fitch.

In early April 2025, President Trump of the United States announced tariffs on global goods imported into the U.S., raising market concerns regarding the sovereign credit ratings of both China and the U.S. S&P Global indicated that in the short term, the trade war would not directly impact the sovereign credit ratings of China and the U.S., maintaining a stable outlook for the U.S.'s AA+ credit rating and noting the resilience of China's A+ credit rating. However, after Trump's announcement of tariffs, Fitch downgraded China's credit rating by one notch, becoming the first major agency to adjust China's credit rating.

04/30 05:03

US Companies Stockpile Inventory to Mitigate Tariffs, First Quarter Economic Data Affected

In early April, U.S. President Trump announced a 145% tariff on Chinese products. To avoid the high tariffs, companies significantly increased imports in March, leading to the U.S. trade deficit expanding to a record high of $162 billion. This move increased the total import amount, negatively affecting the GDP for the first quarter of 2025, with the possibility of economic growth stalling or contracting. Multiple institutions forecast a decline in first-quarter GDP, highlighting the direct impact of trade policy on economic activity.

04/30 05:03

Adidas is under pressure to raise prices due to high tariffs imposed by the US, and the CEO warns that the Samba and Campus shoes might be affected.

The German sports brand Adidas experienced a 155% increase in net profit and a 12.7% increase in revenue in the first quarter of 2025. However, as a result of the high import tariff policies implemented by former U.S. President Trump, CEO Björn Gulden warned that the prices of shoes such as the Samba and Campus models might increase in the U.S. Given the uncertainty surrounding tariff policies, Adidas has not adjusted its full-year financial forecast and stated that it is unable to predict how price increases will affect consumer demand.

04/30 00:31

U.S. President Trump signed an executive order to adjust car tariffs to support domestic manufacturing.

On April 29, 2025, President Donald Trump of the United States signed two executive orders to adjust the tariff policy on automobile and component imports, to provide a short-term buffer for American car manufacturers. The new policy allows certain vehicles assembled in the United States with foreign parts to be exempt from the 25% import tax and provides phased compensation for qualifying components. This adjustment, made after prolonged lobbying by the automotive industry, aims to protect domestic manufacturing and encourage the repatriation of supply chains to the United States.

04/29 21:30

The United States is Facing Economic Shocks Driven by Policy: Increasing Instability Due to Trade Deficit and Pressure from the Debt Ceiling.

In the spring of 2025, the U.S. economy faces instability, with a trade deficit reaching $162 billion USD as companies are importing in advance to cope with high tariffs. The consumer confidence index dropped to 86, and the manufacturing activity index fell to -35.8. Tariff policies have triggered a reorganization of supply chains, leaving the Federal Reserve in a dilemma between cutting interest rates and controlling inflation. The federal debt ceiling issue heightened market unease, causing the S&P 500 index to drop by 10% and foreign capital to withdraw. Economists warn of an imminent policy-driven economic shock.

04/29 19:02

In response to Trump's tariff policies, Taiwanese electronics manufacturing giants like Inventec, Foxconn, and Wistron have strategically established factories in Texas.

Major Taiwanese electronics contract manufacturers such as Inventec, Foxconn, Wistron, Wiwynn, Quanta, and Compal have responded to the high tariff policies of former U.S. President Trump by establishing or expanding their operations in the United States, with Texas becoming the preferred location. These companies' investments reflect their focus on the U.S. market and their quick adaptability to the restructuring of the global supply chain. Texas attracts Taiwanese investment with its vast land, stable electricity supply, and low taxes, and could become a major hub for Taiwan's electronics manufacturing industry in the U.S.

04/29 17:30

The U.S. consumer confidence index dropped to its lowest point in five years, mainly due to worries about tariff policies.

The World Large Enterprises Federation reported on April 29, 2025, that the United States Consumer Confidence Index fell to 86.0 in April, the lowest since May 2020, marking the fifth consecutive month of decline. Consumers are pessimistic about the future economy, employment, and income, especially worried about the high tariffs on Chinese goods, which has become a key factor in the drop in confidence. The tariffs have caused supply chain strains and increased prices, further impacting consumer spending plans.

04/29 15:02

U.S. Treasury Secretary Yellen: The U.S.-India trade agreement is nearing completion, and negotiations with South Korea and Japan are going well.

On April 29, 2025, U.S. Treasury Secretary Scott Bessant stated that significant progress has been made in trade negotiations between the United States and India, South Korea, and Japan. The agreement with India is nearing completion and could be one of the first agreements to be signed; the framework of the agreement with South Korea is in place, but it is influenced by the elections; talks with Japan have entered a critical phase, with the G7 summit possibly playing a key role. These negotiations are occurring in the context of President Trump's "reciprocal tariffs" policy, as Asian countries actively respond to tariff pressures.

04/29 15:02

U.S. President Donald Trump has announced a new car tariff policy set to take effect in 2025, aimed at reducing the tax burden on American car manufacturers.

On April 29, 2025, President Trump of the United States announced a new automotive tariff policy to reduce the tax burden on U.S. car manufacturers. The new policy exempts car manufacturers who have already paid the 25% import tariff on complete vehicles from paying additional tariffs on steel and aluminum materials, and allows for retroactive refunds for duplicate taxes. Regarding the component tariffs effective May 3, the government will reduce the rates and offer a compensation mechanism. This move prompted a rise in Asian automotive stock prices, and General Motors delayed its earnings report in response to the policy.

04/29 15:02

Delta Air Lines Temporarily Pauses Acceptance of New Airbus Models, Reroutes via Tokyo to Bypass U.S. Tariffs.

Delta Air Lines, in order to avoid the 10% import tariff imposed by the United States on new Airbus aircraft manufactured in Europe, has strategically rerouted the newly delivered A350-900 aircraft to Tokyo Narita Airport for international routes to avoid classification by U.S. customs as a "new import." Additionally, Delta has paused the acceptance of aircraft subject to tariffs and adjusted its delivery schedule. CEO Ed Bastian stated that if the tariffs cannot be avoided, Delta will halt aircraft acceptance. Delta has also chosen aircraft models produced in Canada and the United States to avoid tariffs, maintaining a balance between fleet expansion and cost control.

Inventec: Investing 27.6 Billion NTD to Build a Factory in Texas, Focusing on AI Servers

Inventec approved an investment plan on April 28th, 2025, with a maximum investment of 85 million USD (approximately 27.6 billion NTD) to establish a server manufacturing base in Texas, USA. The factory is expected to be operational as early as the second half of the year 2025, focusing on the final assembly of AI servers. Inventec stated that this move aims to strengthen cooperation with clients, expand into new markets, and mitigate risks from fluctuations in U.S. tariff policies.

Texas was chosen not only because it is close to Inventec's existing factory in Mexico, but also due to its stable and ample power supply, land resources, and low-tax environment. General Manager Chih-An Tsai mentioned that the company might continue to expand its investment in Texas in the future.

Foxconn: Establishing a Factory in Houston, Capital Expenditure to Increase by 20% Annually

Foxconn announced in late March 2025 that its U.S. subsidiary, Ingrasys Technology, acquired land and facilities in Houston, Texas, for 142 million USD. This marks Foxconn's continued investment in U.S. manufacturing following its previous investment in California. Chairman Young Liu stated that more production collaborations with clients across multiple U.S. states are planned, with an expected annual capital expenditure growth of over 20%.

Foxconn began its U.S. expansion during Trump's first term and has continued to enhance its manufacturing capabilities in the U.S., covering areas such as servers, electric vehicles, and communication equipment.

Wistron and Wiwynn: Building an AI Manufacturing Base in Texas

Wistron and its server subsidiary Wiwynn are also actively expanding their U.S. production capacity. Wistron approved the plan to establish a U.S. subsidiary, WIUS, in early April 2025, planning to invest up to 50 million USD in land acquisition and factory construction in Texas, marking its first large-scale AI product manufacturing base.

Wiwynn decided in late February to increase its investment in its U.S. subsidiary, WYMUS, by 300 million USD (approximately 9.7 billion NTD) to establish its first manufacturing site in Texas. The factory will focus on AI server production and is expected to start supplying within the year. General Manager Wei-Yuan Lin stated that the 2025 capital expenditure budget is 18 billion NTD, indicating a strong focus on the U.S. market.

Quanta: Operating Dual Factories in California and Tennessee, Expanding Based on Orders

Quanta is one of the first Taiwanese companies to set up factories in the U.S., currently operating one factory each in California and Tennessee. Chairman Barry Lam stated that future expansion will depend on order conditions in the coming years, but emphasized that "expanding the factory is not a problem."

Quanta has been increasing its U.S. investments in recent years, with capital expenditures reaching 15 to 16 billion NTD in 2024, primarily for capacity expansion and new product development. Executive Vice President Chi-Ling Yang noted that almost all overseas expansions in the past two years have been concentrated in the U.S., demonstrating a long-term commitment to the local market.

Compal and Pegatron: Evaluating Expansion and Site Conversion

Compal increased its investment in its Indiana subsidiary by 10 million USD in February 2025 to expand automotive electronics capacity and continues to evaluate North American expansion plans. There are market rumors that Compal is interested in acquiring AMD's AI server assembly capacity in the U.S. to accelerate its localization strategy.

Pegatron's Chairman T.H. Tung stated that if necessary, the existing Indiana site could be converted into a manufacturing base. Although there are no specific factory plans at present, Pegatron has expressed a strong interest in the U.S. market.

Reasons Texas is the Preferred Location for Taiwanese Companies

Looking at the U.S. layout of Taiwanese companies, Texas has undoubtedly become the most favored location. Its appeal comes from various factors: vast land, stable power and natural gas supply, electricity prices half of Taiwan's, relatively low taxes, and proximity to Mexico, which facilitates cross-border supply chain integration.

Additionally, the "Economic Development Intent Statement" signed between Texas and Taiwan's Ministry of Economic Affairs in July 2024 provides policy support and investment incentives for Taiwanese companies. Experts point out that Texas is likely to become a major hub for Taiwan's electronics manufacturing industry in the U.S. in the future.

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