One of the world’s largest server makers has announced localization in the US after Trump’s tariff hike

This week, US President Donald Trump introduced “retaliatory” customs duties on imports from Taiwan, which in total have increased to 42%. Some equipment manufacturers have already expressed their willingness to localize their production in the US, including Wistron.

Image source: Wistron

According to Nikkei Asian Review, the Taiwanese company has announced its intention to establish a subsidiary in the United States in order to spend up to $50 million to purchase land and facilities for its needs. Wistron is currently one of the major contract manufacturers of server equipment, which is used in the construction of computing infrastructure for artificial intelligence systems. The company obviously does not want to lose lucrative orders from American developers of such systems, and therefore is ready to localize production in the United States in a short time.

It should be noted that even before the introduction of increased tariffs in the United States, Wistron’s management intended to expand production capacity outside of Taiwan, so the corresponding decision was prepared in advance. Wistron also announced its intention to issue depositary receipts for a total of $760 million to attract funds from investors outside of Taiwan. The money received will be used to purchase materials and components necessary for the company’s work.

Competing company Foxconn announced at the end of March that it would buy a plot of land and a factory building in Texas for $142 million.