Taiwan plans $4B industrial parks in Texas for Nvidia suppliers

What Nvidia gains from local suppliers

AI servers rely on small manufacturers of power supplies, cooling systems, circuit boards, connectors and chassis. Placing them near U.S. assembly reduces shipping times and tariff exposure, which also helps Nvidia’s position in Washington (we’ve profiled seven of these chipless AI infrastructure providers, from power to cooling, in a free report you can grab here).

One site is small, with $96.22 billion in quarterly revenue and $279 billion in supply commitments. U.S. production generally costs more, although the expected gross margin of around 74% suggests Nvidia has the ability to pass those costs on to its customers.

Taiwan also addressed AI hardware policy. Shipping restricted AI materials to mainland China will become “a criminal offense under the Foreign Trade Law.” This reduces the risk of a leak, and Nvidia’s guidelines already exclude data center compute revenue from China.

Why TSMC is closer to the buildout

TSMC’s planned U.S. investment reached $265 billion after adding $100 billion for Arizona in July. Texas’ supplier base is small by comparison, but it places parts makers between Arizona manufacturing plants and server assemblers.

TSMC is also looking into Texas. Outlining capacity options outside of Arizona on its Oct. 15, 2026, call, management said, “And Texas is one of them,” and added that teams were evaluating options, with no investments announced.

Authorization, U.S. labor costs and whether enough suppliers sign up remain up in the air. Large Taiwanese companies are already striking out on their own. Quanta Computer won approval to spend $973 million on server assembly in Tennessee, and Wistron got approval for $146 million to upgrade a factory in Texas.

Taiwan’s semiconductor exports reached a record $87.22 billion in September, up 60.9 percent from a year earlier. The demand therefore now exists. The parks assume it will hold up long enough to cover the higher costs in the United States.

How Texas Supplier Fleets Could Shape Nvidia and TSMC’s Outlook

Supply remains the main limit to Nvidia’s growth. Huang said the company has a supply that covers about 70% of demand, so the additional U.S. capacity only helps marginally.

TSMC is more directly exposed to the topic of reshoring because it manages the factories that a Texas cluster would serve. Its market value of $1.95 trillion, compared to Nvidia’s $5.25 trillion, also gives local vendors more weight in its story.

The verification signal is an announcement naming the first providers at a Texas park, along with a confirmed site and schedule. Meanwhile, Kung Ming-hsin’s $4 billion figure is only an upper estimate for a single site.

Do you have $1,000? Before you buy NVDA, read this

If you currently have money in your account, give it two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. have put together a definitive report on the top 10 stocks to buy today. And NVDA was not one of them.

They covered the entire market. These are not 10 ideas, not 10 stocks that everyone is talking about, but rather what their research points to as the 10 best stocks to buy right now, and it’s free. Learn more here and see which stocks are on the list –>>

Contact editorial@247wallst.com for any questions or corrections.