President Donald Trump’s tariffs are having the desired effect in Taiwan as many electronics companies are considering moving some of their operations to the U.S. Taiwan Electrical and Electronic Manufacturers’ Association Chairman Richard Lee said Taiwanese companies are looking at Texas and its investor-friendly environment as one area to expand operations in the U.S.
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Lee didn’t name any companies considering Texas investments but notes that announcements should be made within 100 days of President Trump taking office. That means investors will want to watch Taiwan’s electronics industry until May 10 for potential news.
According to Lee, “large server companies” are among those looking to expand their operations in Texas. He said this is especially true of those operating artificial intelligence (AI) servers. That’s worth pointing out as the U.S. government has focused on AI growth and development under President Trump.
Is Donald Trump’s Tariff Trade Policy Paying Off?
In this instance, President Trump’s policy of introducing tariffs to encourage foreign companies to invest in local production appears to be paying off. Semiconductor production is one focus of the tariffs with many companies in this sector based in Taiwan. Hon Hai Precision Industry’s (HNHPF) Foxconn is among them and recently spent $33 million to purchase land and factories in Texas.
President Trump’s local production push has upset many as concerns about rising prices spread. The tariffs have also strained the U.S.’s relations with other countries. However, Taiwanese electronics companies’ dedication to working alongside the U.S. could spread to other companies globally as they seek to avoid the effects of the trade war.
Which Taiwan Electronics Stocks Are Worth Betting On?
With news of Taiwanese companies considering investments in the U.S., traders might want to invest in them in return. Foxconn is an obvious choice as it already announced U.S. investments, but others are worth weighing. That includes TSMC (TSM), which is reportedly in talks to acquire part of Intel (INTC).
U.S. stocks could also benefit from Taiwanese companies expanding U.S. production. For example, Foxconn’s investments in U.S. production are good news for Apple (AAPL) and Nvidia (NVDA) as it’s among their biggest suppliers.
