Taiwan Firms Face Hurdles in U.S. Expansion Amid AI-Driven Shift: Experts

Taipei: Taiwanese companies looking to expand into the United States amid the artificial intelligence (AI) boom face mounting challenges, including high costs, infrastructure gaps, and legal and talent constraints, though experts say such expansion is increasingly unavoidable. According to Focus Taiwan, at the 2026 AI Forecast forum in Taipei on Wednesday, speakers agreed that Taiwanese firms should invest in the U.S., but stressed that execution, rather than timing, will determine success. Panelists outlined several practical barriers to establishing operations in the U.S. Philip Wong, a professor at Stanford University's School of Engineering, said some of Taiwan's key competitive advantages are difficult to replicate overseas. "The most difficult thing to take overseas is corporate culture," Wong said, adding that such change "is very hard and a gradual process." He also highlighted the importance of Taiwan's deep research and development (R and D) base, noting that manufacturing requires continuous inno vation. "Manufacturing is not just making a fixed product. It requires continuous improvement and development of the next generation," he said. Hu Hui-sen, vice chairman of the Taiwan Electrical and Electronic Manufacturers' Association, pointed to infrastructure and administrative hurdles as major obstacles. "In Taiwan, if you want to build a factory, you go to an industrial park where everything is ready," Hu said. "But in the U.S., the location you choose may not even have a stable power supply." He added that delays in securing work visas for engineers have further complicated expansion efforts. From a legal perspective, Chu Chao-min, chairman of the International Artificial Intelligence and Law Research Foundation, warned that companies must navigate complex regulatory risks. "If you don't understand U.S. laws, you may face prosecution," he said, citing cases involving export controls and cross-border transfers of sensitive technologies. Despite these challenges, panelists said U.S. expansion is becom ing increasingly necessary for Taiwanese firms in the AI era, though success will depend on careful planning and risk management. "You have to go, but you must find a way to survive first," Hu said.