In the world of technology, movements don’t happen overnight. They require strategy, vision, and most importantly, reading the game well. That’s exactly what major Taiwanese electronics manufacturing services (EMS) companies are doing: investing billions of dollars on U.S. soil to secure a prominent position in the global race for artificial intelligence.
It’s not just about business. It’s also geopolitics, logistics, and in many cases, survival.
The perfect storm: AI, tariffs, and fragile supply chains
Over the past two years, the AI boom has sparked a global fever for servers capable of running increasingly complex models. Companies like Wistron, Foxconn, Quanta, and Wiwynn have seen their orders soar, especially from cloud and hyperscale providers who need infrastructure now.
But this technological fever has been compounded by another factor: the U.S.-China trade tensions. Washington has imposed new restrictions and tariffs affecting critical components, which has raised alarms in Taiwan. The response? Moving part of the production closer to home—within the United States.
California and Texas: new AI hotspots
For example, Wistron has allocated $45 million to its California subsidiary to strengthen AI server development and assembly capabilities. Meanwhile, Foxconn has invested $128 million in new facilities spread across Houston and California, with a clear goal: being closer to their U.S. customers and reducing logistical risks.
Texas, with its expanding tech ecosystem and investment-attracting policies, is becoming one of the focal points of this new phase. Quanta already operates there and in Tennessee, while Wiwynn is strategizing to diversify its production.
From global leaders… to local players
Taiwan manufactures more than 80% of server systems and more than 90% of motherboards worldwide. Yet, less than 15% of that production takes place in North America. This imbalance exposes manufacturers to risks of disruptions or cost increases due to political issues or transportation.
With AI accelerating investment and deployment, no company wants its infrastructure dependent on long, potentially blocked routes. Producing closer to the end customer today is a competitive advantage… and a safety net for continuity.
A move that also signals the future
The interesting part is that these investments are not spontaneous. Sector analysts say Taiwanese EMS companies are following a strategic roadmap that goes beyond reacting to tariffs: they aim to position themselves as strategic partners in the U.S. AI industry, not just suppliers.
The message is clear: if you want cutting-edge AI servers, you won’t need to look across the Pacific. They’ll be assembled just a few states away.
Between collaboration and competition
This shift also opens new opportunities for the U.S. industry, which can more easily integrate its supply chain with high-tech partners. However, it’s important to remember that Taiwan remains a formidable competitor in efficiency and costs—even manufacturing in the U.S.
For Taiwanese companies, the challenge is maintaining margins while adapting to higher labor and operational costs. For U.S. companies, it’s an opportunity to strengthen their AI ecosystems with partners already mastering the hardware that makes it all possible.
Conclusion: a strategic move to stay in the race
What’s happening between Taiwan and the U.S. in the AI sector is a lesson in adaptation. Just as companies that failed to recognize the shift toward smartphones were left behind, those that don’t grasp the speed and complexity of the AI market risk the same fate.
In this case, Taiwanese EMS companies have decided not to wait and see. They’ve moved—and they’ve done so big time.
Frequently Asked Questions
1. Why now?
Because the demand for AI servers is at its peak, and U.S.-China trade tensions could drive up costs or delay deliveries if production isn’t diversified.
2. What benefits does this bring to the U.S.?
Increased local capacity, shorter delivery times, and a more secure supply chain for major tech giants.
3. Could other regions replicate this model?
Yes. Europe and Mexico could be next destinations, although the U.S. market and policies make it especially attractive.
4. Will this reduce dependence on Taiwan?
Partially. Taiwan will remain a key production hub but with a greater presence in markets that consume its technology.