Taipei: Inventec Corp., a prominent contract electronics manufacturer based in Taiwan, is set to construct a new facility in Texas, USA, to produce artificial intelligence services and related products. This strategic move comes as a response to tariff threats posed by U.S. President Donald Trump.
According to Focus Taiwan, Inventec announced in a statement to the Taiwan Stock Exchange that its board has approved an investment plan of up to US$85 million for the U.S. project. The company will utilize its U.S. subsidiary to identify a suitable location in Texas, with the investment scheduled to occur between May and December. However, a specific timeline for when the plant will begin mass production has not been established.
Inventec plans to finance the Texas investment through its own capital and bank loans, clarifying that the US$85 million investment will not include the acquisition of production equipment. The decision to develop this facility in Texas is part of a broader strategy to mitigate the impact of President Trump’s tariff policies. On April 2, the administration announced reciprocal tariffs on countries with significant trade surpluses with the U.S., including a 32 percent duty on Taiwan.
In response, the White House declared a 90-day suspension of the new tariffs on April 9, applying a 10 percent duty to all countries except China to allow negotiations for reduced levies. The Texas facility is expected to enhance Inventec’s relationships with American clients and support its global expansion efforts.
Currently, Inventec operates facilities in Mexico producing electronics such as servers, notebook computers, and automotive electronics. The company has been exploring U.S. investment opportunities since January, recognizing the challenges of shipping large, costly servers to the American market from abroad.
In its annual report, Inventec emphasized monitoring the global supply chain impacts of U.S. tariff policies, intending to adjust its global production network promptly to sustain profitability. The company anticipates continued growth in server sales by 2025, driven by generative AI development, high-performance computing, cloud services, and 5G smart applications.
In 2024, Inventec reported a net profit of approximately NT$7.2 billion (US$223 million), an 18.54 percent increase from the previous year, with earnings per share rising to NT$2.03 from NT$1.71 in 2023.
Other major Taiwanese firms, including Hon Hai Precision Industry Co., Quanta Computer Inc., and Wistron Corp., have also been expanding their operations in the U.S. market. Compal Electronics, Inc. has identified Texas as a potential U.S. investment location as well.
