What you need to know
Taiwanese electric vehicle (EV) gear supplier Hota Industrial Manufacturing Co. is set to establish a new facility in New Mexico, US, with an initial investment of around NTD $1.5 billion ($54 million).
Taiwanese and the U.S. industrial cooperation is advancing further in the manufacturing field of electric vehicle (EV) components, apart from the semiconductors. Taiwanese EV gear suppliers Hota Industrial Manufacturing Co. announced on Wednesday (September 20th) that they will set up a new facility in New Mexico, United States, with an initial investment of approximately NTD $1.5 billion, to supply EV gear to their U.S. automotive customers iincluding the leading EV company Tesla.
Shen Guo-Jung, chairman of Hota Industrial Manufacturing Co., jointly held a press conference with Michelle Lujan Grisham, the Governor of New Mexico, to announce the new investment based on U.S-Taiwan co-operation.
The new facility will be located in the Santa Teresa Industrial Parks, covering an area of 30 acres, to be completed in three phases. Hota Industrial also revealed that the initial investment is approximately NTD $1.5 billion, but the total investment is expected to exceed NTD$ 3 billion in the future.
Grisham emphasized that Hota's investment in New Mexico represents a more significant vision aligned with the United States’ decarbonization goals, receiving strong support from both the state and federal governments. Hota’s involvement in the EV industry will contribute to reducing carbon emissions in transportation, she said.
Grisham pointed out that the New Mexico state government has already granted Hota Industrial a U.S. $3 million grant, and in the future, they will provide benefits such as employee training and manufacturing industry tax incentives, which are expected to create 350 job opportunities locally.
Governor Grisham stressed that Hota Industrial's investment in New Mexico will benefit U.S. foreign trade, economic security, workforce training, and talent investment and hopes it will become a model for the entire United States.
Shen, Chairman of Hota Industrial, stated that the Covid-19 pandemic over the past three years, coupled with the U.S-China trade war, has led to a shift in the supply chain from globalization to regionalization.
This was the reason for Hota Industrial's consideration to produce components in the United States. Additionally, the rapid growth of the U.S. EV industry has prompted Hota Industrial to move over 60% of its production capacity to North America, making it a base for expanding its North American business.
Shen Guorong outlined three main reasons for Hota Industrial's investment in New Mexico. Firstly, as an industrial district, New Mexico's convenient geographic location makes it possible to reach the farthest destinations across the U.S. within two days and the nearest ones in 4-8 hours.
Secondly, the state of New Mexico offers many subsidies and cost-saving infrastructure, such as vast land and abundant energy. Thirdly, Hota Industrial can attract the nearby students, who are trained skillfully in the technology fields in renowned institutions, to help resolve the common labor shortage in the local manufacturing industry.
New Mexico is located in the heart of the southwestern U.S., adjacent to Mexico, and is the fifth-largest state in terms of land area and the 4th largest energy-supplying state in the United States. It boasts advantages such as low population density, low land prices, affordable electricity, and water resources.
These factors have made it an attractive location for many Taiwanese companies to set up operations. In 2021, New Mexico opened a representative office in Taipei and signed a memorandum of economic and trade cooperation with Taiwan, laying the foundation for bilateral cooperation.
Recognizing the potential for Taiwan-U.S. cooperation, there are currently 15 U.S. state governments, plus one territory, with commercial offices in Taiwan, including the states of New Mexico, Arizona, Florida, Hawaii, Idaho, Louisiana, Maryland, Minnesota, Missouri, Montana, Pennsylvania, South Carolina, Wyoming, Virginia, and Guam.
TNL Editor: Kim Chan (@thenewslensintl)
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