[News] Foxconn and Taiwanese Manufacturers Boost U.S. Expansion Amid Potential Trump Tariff Hikes

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“Trump 2.0” has officially commenced. According to a report from Commercial Times, although no tariff-related policies have been enacted immediately, it is anticipated that the U.S. will soon impose tariffs on foreign trade. As a result, major Taiwanese manufacturers are expediting their efforts to establish or expand factories in the U.S., aiming to secure the benefits of localized manufacturing ahead of  potential tariff  hikes.

GlobalWafers

GlobalWafers is leveraging the Advanced Manufacturing Investment Credit (AMIC), introduced by the U.S. to encourage investments in the semiconductor sector. This subsidy provides up to 25% tax credits for qualified expenditures at GlobalWafers’ U.S. facilities, including GWA and MEMC LLC.

Additionally, in December 2024, GlobalWafers finalized an agreement with the U.S. Department of Commerce, securing up to USD 406 million in subsidies through the CHIPS and Science Act.

According to the report, GlobalWafers’ facilities in Texas and Missouri are anticipated to complete the first phase of project milestones by mid-2025, with the initial tranche of subsidies expected to be disbursed by the end of the same year.

AI Server Demand Driving U.S. Manufacturing Initiatives 

The report further notes that downstream system manufacturers, while not directly benefiting from subsidies like AMIC, are also accelerating efforts to establish or expand their manufacturing operations in the U.S. According to the report, high-end AI servers primarily serve U.S.-based customers or nearby regions, prompting Taiwanese companies to actively set up or scale up local production lines to meet this growing demand.

Early movers such as Quanta and Wistron have already established AI server-related production lines or R&D centers in California, which are now operational, as the report notes. Over the past six months, Quanta has further expanded its manufacturing capacity at its Tennessee facility twice. Wistron, on the other hand, has invested in a new after-sales service center in Texas, focusing on serving AI server-related clients.

On the other hand, Foxconn announced in mid-January, 2025, that it would invest USD 128 million to purchase land and facilities in California to expand its AI server production capacity. The report points out that in November 2024, Foxconn also invested USD 33.03 million to acquire land and facilities in Houston, Texas, aiming at strengthening its AI server capabilities.

Other manufacturers are also actively addressing the growing demand for U.S.-based manufacturing. For example, Pegatron’s facility in Louisiana is equipped to meet these needs. Additionally, companies such as Asus and MSI are ramping up their local production capacity in California to handle the increasing shipment volume of AI servers to the U.S.

 

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(Photo credit: Foxconn)