As Taiwanese technology companies expand their manufacturing footprint in the United States, a familiar concern has resurfaced at home: are they being forced to move by Washington? A US‑based scholar argues the forces at work are more pragmatic than political, driven by customer demand, domestic constraints and shifts in global manufacturing.
The Question Isn't Whether to Go—But How
In an interview with Storm Media,Chu Chentso (朱宸佐, Wesley Chu), a researcher at Harvard Kennedy School and secretary-general of the International Artificial Intelligence and Law Research Foundation, said cross-border expansion in the technology sector has become unavoidable. “As customer demand grows rapidly and Taiwan continues to face constraints such as limited power supply, international deployment is no longer optional,” Chu said. “For Taiwanese companies, the key issue is not whether to go to the US, but how to go.”
He stressed that firms must seize new opportunities created by the restructuring of global manufacturing while ensuring that core technologies, R&D capacity and key talent remain rooted in Taiwan. Preserving technological sovereignty and sustaining industrial upgrading, he added, is a responsibility governments must actively take on.
Texas Is Becoming a New Base for Taiwanese Manufacturers
Currently conducting research in Texas, Chu noted that the state has emerged as a major destination for Taiwanese corporate investment. Taiwan's so‑called “Big Five” electronics contract manufacturers—Quanta, Wistron, Pegatron, Compal and Inventec—have all established operations there. Beyond TSMC's high-profile semiconductor investments in Phoenix, Arizona, a growing number of Taiwanese firms are also moving into Texas. Chu said this clustering effect could eventually support the emergence of a more complete industrial ecosystem in the United States.
This Is Expansion, Not an Industrial Exit
Chu rejected the idea that Taiwanese firms are “leaving” Taiwan. Instead, he described current US investment as industrial expansion rather than corporate flight. He used the phrase “Made with Taiwan” to describe Taiwan's evolving role in global supply chains. Rather than remaining a manufacturer defined primarily by speed and efficiency, Taiwan, he argued, is moving toward more advanced, system-level and strategically critical positions. “Clinging to a ‘Made in Taiwan' mindset is no longer sufficient,” Chu said. “What matters is how Taiwan embeds itself in the next generation of global systems.”
From “Made in Taiwan” to “Made with Taiwan”
According to Chu, future US development in cloud computing, semiconductors, artificial intelligence and defense will continue to prioritize supply-chain security and trustworthiness, effectively excluding Chinese companies from these systems. At the same time, structural gaps remain in areas such as manufacturing capacity, AI hardware, systems integration, drones and robotics. These gaps, he said, represent strategic entry points for Taiwanese firms to deepen their role in what he described as “democratic supply chains.”
Competition is already intensifying. Companies from Japan and other countries are racing to occupy similar positions, increasing pressure on Taiwanese firms to move faster and act more strategically.
Competing on Value, Not on Cost
Chu cautioned against relying on cost-cutting as a core strategy. Instead, he urged Taiwanese companies to focus on higher value-added positioning. Using beef noodles as an analogy, he noted that a bowl priced at around NT$100 in Taiwan can sell for more than US$20 in the United States. “This isn't about cost,” he said. “Companies shouldn't spend all their time thinking about how to reduce costs, but about how to increase value.”
Why Washington Matters More Than Local Governments
US expansion also brings new political and institutional challenges. Chu observed that investing in the United States differs fundamentally from Taiwanese firms' earlier experience in China, where maintaining good relations with provincial governments was often sufficient. Under the more assertive governing style of President Donald Trump, large foreign investors must engage directly with the US federal government. Competitors such as Samsung maintain large lobbying teams in Washington, DC, while Japanese and major US firms operate at similar scales. Taiwan's institutional presence, by comparison, remains relatively limited.
As Taiwanese investment in the US grows, Chu argued, companies seeking to reduce policy uncertainty and secure access to key American resources will need to systematically strengthen their policy engagement and institutional communication in Washington.
Original Article in Chinese
