On October 16, 2026, Taiwan's Ministry of Economic Affairs explained that its plan for industrial parks in the United States would be financed by private companies with government support. Each park is expected to involve an investment of $2 billion to $4 billion. According to a Bloomberg interview with Economic Affairs Minister Kung Ming-hsin, published the same day, the first park would be built in Texas to help small and midsize suppliers to TSMC and Foxconn (Hon Hai Precision Industry) expand into the U.S. The idea is to bring not only the large manufacturers but also the parts makers that support their factories to the American market.
The ministry is developing the parks together with the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA). In May, the two signed a memorandum of cooperation covering everything from site surveys to construction and management. The latest explanation adds a cost estimate and a clearer view of how financing would work.
$4 Billion Is a Construction Cost Estimate for One Park
The ministry's response to the Central News Agency (CNA) specifies who would provide the funds. The companies involved would invest jointly and raise the necessary capital. In the ministry's words, the approach is that companies put up the money and the government provides support.
The $2 billion to $4 billion figure applies to each park. In Bloomberg's report carried by Insurance Journal, Kung also estimated construction costs for each park within that range and indicated an intention to set up multiple parks in the U.S. The interview took place on October 12, and its contents were reported on the 16th.
The $4 billion figure therefore cannot be read as an amount the Taiwanese government has committed, nor as the total project cost across all U.S. parks. A construction cost estimate is different from capital companies have actually raised. The ministry's explanation describes the investment model; it is not an announcement that fundraising is complete.
The land question also remains unconfirmed. Bloomberg, citing a person familiar with the matter, reported that the Taiwanese side has secured land in Texas. The ministry, however, told CNA it will explain the land acquisition at an appropriate time. A report based on an anonymous source about securing land should be distinguished from the government's own disclosure of the acquisition status.
Helping Small Parts Makers Expand into the U.S.
Bloomberg identifies the intended beneficiaries as the small and midsize suppliers needed by TSMC and by Foxconn, which assembles AI servers. Companies supplying items such as semiconductor packaging substrates and cooling modules underpin the larger manufacturers' operations, the report says. Although the plan is described as strengthening the supply chain serving NVIDIA, NVIDIA itself has not announced that it will move into a park.
Even if large manufacturers can invest in the U.S. and manage local operations on their own, smaller suppliers cannot necessarily do the same. Companies delivering parts must handle not only their own equipment but also local regulations and business operations. Combining industrial parks with government support is meant to ease the burden on such companies as they start operating in the U.S.
The support spans both finance and administration. Kung told Bloomberg that the government would provide loan guarantees to companies seeking to expand and would help them communicate with federal and local U.S. authorities about visa and land requests. The idea is to support borrowing and coordinate local business operations in parallel.
The U.S. investment support measures the ministry announced on May 7 show the same division of roles. Government funds and financial institutions would set up funds for guarantees, backing loans for companies' equipment purchases, working capital, and the development of industrial clusters. A loan guarantee supports borrowing, so the flow of money differs from a subsidy that pays construction costs directly to a company.
The same announcement said that the Taiwan trade and investment centers in Dallas and Phoenix would assist companies. They would advise on investment regulations and tax systems and work with accounting and law firms. By combining park siting and development, loans, and practical consulting, the plan aims to give even small companies a foothold for expanding overseas.
What Has Become More Concrete Since the May Memorandum?
The ministry and TEEMA signed the memorandum of cooperation on May 6, U.S. Eastern time. The official announcement the next day said they would survey sites for U.S. industrial parks and pursue planning, construction, and management services. It also mentioned that the minister and others planned to visit candidate sites in Texas.
The May 6 memorandum set out a framework for site surveys, planning, construction, and management, while the October 16 explanation presented the $2 billion to $4 billion per-park estimate and the private-funding model.
| Date | Who announced it and what | How to read it in the plan |
|---|---|---|
| May 6, 2026 (U.S. Eastern time) | The ministry and TEEMA signed a memorandum covering site surveys, planning, construction, and management of U.S. parks | A cooperation framework for building industrial clusters overseas |
| October 16, 2026 | The ministry told CNA each park would cost $2 billion to $4 billion, with private investment and government support | A construction cost estimate and a more specific investment model |
The table sets the second support measure in the ministry's May 7 announcement beside the ministry's October 16 response reported by CNA, comparing them by what is being prepared and how it is financed. The May agreement does not mean construction has begun, and the October figure does not represent money already spent. Comparing the two points in time suggests that a scale estimate has been added to a framework that was already in progress.
The fact that the memorandum extends to management services also hints at what the plan is meant to do. It does not stop at developing a place where companies gather; it covers operations after they arrive. However, the latest explanation does not say which management tasks would be handled by whom, or what tenants would be charged for them. The breadth of the framework and the settlement of individual services are at different stages.
Tenants and Investment Will Decide Whether It Becomes a Supply Chain
Kung told Bloomberg that the goal is a long-term, sustainable supply chain in which U.S. companies and local workers can also take part. The concept is to connect a hub where Taiwanese companies move in together with American businesses and jobs. If realized, it could become a way to support large manufacturers' U.S. production increases from the surrounding supplier base.
To judge how effective it will be, it will be necessary to watch which processes companies place locally, alongside any announcement on land. If tenants supplying substrates and cooling components are confirmed, it will be possible to examine how they would support transactions with the large factories. Conversely, knowing only a park's construction cost does not reveal how much additional parts-supply capacity will exist locally.
Because the plan relies mainly on private capital, the conditions under which participating companies decide to invest are also essential. Even if loan guarantees and administrative coordination encourage expansion, they do not by themselves settle an individual company's orders or profitability, and tenancy decisions will depend on customer transactions and local business plans. Once construction and operating schedules are set and the necessary parts makers have joined, the $2 billion to $4 billion park concept can be assessed by a concrete yardstick: which manufacturing processes in the U.S. the plan can actually support.