Taiwan plans to develop a $2 billion–$4 billion industrial park in Texas to strengthen semiconductor and artificial intelligence hardware supply chains linked to TSMC, Nvidia and other major technology companies, its Ministry of Economic Affairs said Friday.

The proposed complex will be the first in a series of U.S. industrial parks designed to help smaller Taiwanese manufacturers establish operations in the country.

The ministry said private businesses would provide funding while the government would offer financial and administrative assistance. The project will be developed in cooperation with the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA), which will help raise the necessary funding.

The initiative aims to extend Taiwan’s overseas manufacturing expansion beyond major technology companies to the smaller businesses that supply them.

The proposed parks would provide smaller Taiwanese suppliers with a base closer to major U.S. manufacturing operations, potentially easing logistical challenges and helping companies coordinate production with their customers.

TSMC is a major manufacturer of advanced semiconductors, including chips used in Nvidia’s computing hardware, while Foxconn assembles AI servers and other electronic equipment.

The government plans to support participating companies through loan guarantees and assistance with administrative requirements. It will also help coordinate discussions with U.S. federal and local authorities on matters including visas and land arrangements.

According to Bloomberg, land has already been secured in Texas for the proposed industrial park. However, Taiwan’s Ministry of Economic Affairs has not confirmed the location and said that additional details would be provided later.

Texas is expected to be the starting point rather than the only location for the initiative.

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