Taiwan Plans Up to $4B Texas Park for Nvidia’s Supply Chain

Taiwan plans to raise billions of dollars to develop industrial parks in the US that would build a base for a supply chain for Nvidia and other AI hardware makers, Bloomberg reported on 16 October 2026. “The initiative is starting with a complex in Texas that would cost as much as $4 billion to build,” Bloomberg wrote, citing Taiwan’s Minister of Economic Affairs Kung Ming-hsin.

The facilities would help smaller suppliers that are essential to the operations of TSMC, Nvidia’s main production partner, and of AI server assemblers including Foxconn to set up shop in the US, Kung said, according to Bloomberg.

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What Kung Said

Kung spoke to Bloomberg in an interview on 12 October, according to Economic Daily News, which published a Chinese-language account of the interview. In that account, Kung said each park would cost about $2 billion to $4 billion to build, and that the government plans more than one in the US.

The government is working with the Taiwan Electrical and Electronic Manufacturers’ Association, which would be responsible for raising the funds needed for development, according to the same account.

Kung said the government would support suppliers that want to move into the parks, including with credit guarantees for loans, and would help them deal with US local and federal officials on needs such as visas and land, Economic Daily News reported.

Who Pays, and How

Bloomberg’s report describes the plan as Taiwan raising billions of dollars. In Economic Daily News’ account, the money for development is to be raised by the manufacturers’ association, with the government offering loan guarantees and help with officials, rather than a direct budget figure.

When Taiwan reached a trade agreement with the US this year, it committed to help provide $250 billion in credit guarantees to support further investment in the US semiconductor supply chain, according to the same report.

By our arithmetic, a $4 billion first park is 1.6% of that $250 billion guarantee commitment. That is our calculation; neither report links the two figures.

Why Smaller Suppliers

TSMC and Foxconn can raise funds for and manage their own US expansion, but small and medium-sized suppliers may not be able to, according to the Economic Daily News account. Taiwan hopes the new parks can help them, it says.

Kung said the scale of AI demand offers a large opportunity to move manufacturing back to the US. The business is profitable enough to help cover the high initial cost of building US plants, and costs fall as operations scale, he said, according to the same account.

He also said Taiwanese suppliers taking AI orders face heavy pressure on delivery times, so they are expanding capacity at home and abroad at the same time, Economic Daily News reported.

Texas, TSMC and the Land

Bloomberg, citing people familiar with the matter, reported that Taiwan has already secured land for a park in Texas, according to Economic Daily News. The Ministry of Economic Affairs did not confirm the details and said it would explain at an appropriate time, the report says.

TSMC said on Thursday that it is also evaluating a new US site in Texas, as we reported from its earnings call. Asked whether TSMC had chosen Texas, Kung said the company is evaluating many locations, according to the Economic Daily News account. TSMC declined to comment, it says.

Foxconn and Wistron have recently expanded in Texas, making the state a popular destination for Taiwanese companies, the report says. Kung also joked that Elon Musk is welcome to use the new supply chain Taiwanese companies build in the US, but that Taiwan would not transfer all of its technology to him, according to the same account.

Where Nvidia Sits

The plan comes in the same week that Nvidia chief executive Jensen Huang said the Nvidia gear in each gigawatt of AI data centre has gone from about $18 billion to over $40 billion, as we reported, and Nvidia set out plans to invest in five UK startups.

The Structural Read

As we read it, the money is structured as support rather than a budget line: in Economic Daily News’ account of the interview, the manufacturers’ association raises the development funds and the government offers loan guarantees, while Bloomberg describes Taiwan as planning to raise billions of dollars.

As we read it, the parks address the part of the chain that cannot finance itself: TSMC and Foxconn can fund and manage their own US expansion, but smaller suppliers may not be able to, according to the same account.

As we read it, the Texas choice follows where Taiwan’s large companies are already moving: Foxconn and Wistron have recently expanded in Texas, and TSMC said on Thursday it is evaluating a new US site there, while Kung said TSMC is evaluating many locations.

Three Implications

SMALLER TAIWANESE SUPPLIERS Kung said the government would support suppliers that move into the parks, including with loan credit guarantees and help with US officials on visas and land, according to Economic Daily News.

TSMC AND FOXCONN The parks are meant to help the smaller suppliers essential to TSMC, Nvidia’s main production partner, and to AI server assemblers including Foxconn set up in the US, Kung said, according to Bloomberg.

TAIWAN’S MINISTRY The Ministry of Economic Affairs did not confirm the reported Texas land and said it would explain at an appropriate time, according to Economic Daily News.

The Business Engineer Lens

This story maps onto the Business Engineer framework AI’s Geopolitical Chokepoint.

The framework starts from the claim that “The digital economy rests on a physical foundation that most people in that economy never see.”

As we read it, Taiwan’s parks are an attempt to move part of that foundation, the smaller suppliers behind TSMC and Foxconn, into the US with government guarantees. The framework predates the report and is about materials and processing; it does not discuss Taiwan’s plan.

What Is Not Established

In what we read, there is no Ministry of Economic Affairs release giving a site, a size, a timetable or the companies that would move in. The $2 billion to $4 billion range and the up-to-$4 billion Texas figure come from Kung’s interview, and Bloomberg describes the Texas cost as “as much as $4 billion.”

The land in Texas is reported by Bloomberg citing people familiar with the matter and was not confirmed by the ministry. Neither report says how much the manufacturers’ association would raise or how large the loan guarantees for these parks would be. We read Bloomberg’s first two paragraphs on bloomberg.com; the rest of the interview we read in Economic Daily News’ Chinese-language account, and the English wording here is our translation.

The Bottom Line

Taiwan plans industrial parks in the US for the supply chain of Nvidia and other AI hardware makers, starting with a Texas complex that would cost as much as $4 billion, Minister of Economic Affairs Kung Ming-hsin told Bloomberg.

In Kung’s account, each park would cost about $2 billion to $4 billion, there would be more than one, and the government’s support would come as loan guarantees and help with US officials for the smaller suppliers that TSMC and Foxconn depend on.