Major Asian tech firms including Inventec, Flex, and Vivotek are expanding US manufacturing operations as Trump-era tariffs return, reshaping global supply chains for AI infrastructure.
Inventec’s $200M Texas AI server plant and Flex’s $1.2B South Carolina cloud contract reveal urgent industry realignments following June 10-14 announcements, as China’s June 15 gallium export controls complicate decoupling efforts.
Tariff-Driven Manufacturing Shifts Intensify
Taiwanese server manufacturer Inventec confirmed plans on 10 June to establish a $200 million facility in Texas specializing in AI-optimized servers, with CEO William Lee stating: ‘Proximity to North American hyperscalers reduces delivery times from 12 weeks to 18 days.’ The move follows Flex’s 12 June announcement of a $1.2 billion cloud infrastructure contract tied to its South Carolina plant expansion.
Technical Sovereignty vs Cost Efficiency
DIGITIMES data shows Taiwanese original design manufacturers (ODMs) now control 92% of US hyperscaler server contracts. However, S&P Global’s 12 June report reveals a 300% price disparity between US-assembled and China-made AI chips due to tariffs. ‘This isn’t just about tariffs – it’s about complying with potential localization mandates for government contracts,’ explains tech policy analyst Mei Chen from the Brookings Institution.
Parallel Supply Chain Realignments
While Taiwanese firms focus on US expansion, South Korea’s Samsung SDI committed $3.5 billion on 13 June to build Malaysia’s first lithium iron phosphate battery plant. This mirrors broader Asian manufacturing trends, with Vietnam’s electronics exports to the US growing 28% year-over-year through Q1 2024 according to Vietnam Customs data.
Historical Context: Trade Policy Ripple Effects
The current manufacturing shifts echo 2018-2020 relocations triggered by initial Trump tariffs, when companies like Foxconn announced Wisconsin plants that later scaled back. However, the 2024 moves differ in focusing specifically on AI infrastructure rather than consumer electronics. As noted in MIT’s 2023 Supply Chain Resilience Index, the percentage of US-bound high-tech manufacturing located in China dropped from 42% to 31% between 2020-2023.
Precedent: Mobile Payment Revolution Parallels
Today’s infrastructure realignments follow patterns seen during China’s 2010s mobile payment boom, when Alipay and WeChat Pay’s rise forced global competitors to localize operations. Similarly, current US manufacturing investments aim to capture emerging AI infrastructure standards while complying with political realities – a balance that will define next-generation tech supply chains.
