Taiwanese Tech Giants Eye US Expansion Amid Trump Tariffs

As President-elect Donald Trump prepares to take office, Taiwanese contract laptop makers Compal and Inventec are considering expanding their operations into the United States, with Texas being a top location. The companies' executives have cited the state's robust power infrastructure, proximity to Mexico, and independent electricity grid as key advantages for their expansion plans. However, the uncertainty surrounding Trump's tariff policies, particularly his threat of 25% tariffs on Mexico, has raised concerns among Taiwanese companies regarding their business relationships with Chinese customers and partners.



The expansion of US trade sanctions against Chinese semiconductor firms has also raised concerns among Taiwanese companies, as many have invested in domestic manufacturing to build components that go into electric vehicles and artificial intelligence (AI) servers for North America. Taiwan's economy minister has stated that the government will help companies relocate production from China, given the likely large impact from Trump's tariffs. This shift in production could lead to increased costs and potential delays in production, as well as disruptions to existing supply chains.



Despite these challenges, Taiwanese companies are exploring alternative manufacturing sites in Southeast Asia and Mexico to reduce their exposure to potential tariffs. The ICT industry, which generates over US$800 billion in annual revenue with 75% of production overseas, is particularly affected by Trump's tariff policies. Companies are diversifying their investments, relocating production, and considering expanding into the US to mitigate the risks associated with Trump's tariff threats.

In conclusion, Taiwanese contract laptop makers Compal and Inventec are considering expanding into the US market, with Texas being a top location. While the state offers several advantages for their expansion plans, the uncertainty surrounding Trump's tariff policies and potential challenges in the US market may impact their decision-making process. As Taiwanese companies navigate the complexities of global trade dynamics, they are exploring alternative manufacturing sites and diversifying their investments to mitigate risks and maximize opportunities.