Amidst the ongoing push for U.S. re-industrialization and the gradual shaping of Taiwan-U.S. tariff agreements, global supply chains are undergoing a new wave of structural reorganization. In response to this trend, the International Artificial Intelligence and Law Research Foundation (IAILRF) hosted the "International Forum on Taiwan-U.S. Co-Production Thinking and Protection Strategies" on April 17. The event gathered representatives from think tanks, industries, academia, and the legal and accounting sectors across Taiwan and the U.S. for a cross-disciplinary dialogue on the opportunities and risks inherent in supply chain restructuring.

The forum brought together numerous distinguished experts from both Taiwan and the U.S., including Minister of Justice Cheng Ming-chien, Deputy Minister of Digital Affairs Betty Hu, and Panshi Insurance Brokers Chairman Chen Chao. They were joined by representatives from international think tanks and professional institutions, such as Hudson Institute Senior Fellow Riley Walters, Stanford University Hoover Institution Research Fellow Kharis Templeman, State of Texas Taiwan Office Director Chih-Ping Nieh, and State of Arizona Taiwan Office Director Chu-Hsien Hsu. Legal and accounting experts, including Hao-Sheng Wu, Partner at White Summers Caffee & James LLP, and Eugene Su, Executive Director at PwC Taiwan, also participated in the comprehensive discussions.

From "Manufacturing Base" to "Strategic Partner"

Chen-Tso Chu, Secretary-General of the IAILRF, pointed out that in the face of the "Made in America" trend, Taiwan is steadily transitioning from an OEM/ODM-focused manufacturing base (Made in Taiwan) to a strategic partner that co-manufactures, co-innovates, and shares risks with international supply chains (Made with Taiwan).

He noted that while U.S. manufacturing presents new opportunities, it also brings multiple challenges, such as high costs, talent shortages, and immature industrial clusters. Therefore, as Taiwanese enterprises expand into the U.S., they must simultaneously strategize on protecting core technologies and preventing the drain of talent and capital. By adopting a holistic approach to industrial park and cluster planning, companies can strengthen supply chain collaboration and avoid the pitfalls of operating in isolation, thereby maintaining long-term competitive advantages.

[The Co-Production Aspect] From an Export-Driven to a Co-Production Model: A New Survival Strategy for Taiwanese Enterprises

Driven by U.S. re-industrialization and shifting bilateral tariffs, Taiwanese enterprises are facing a fundamental transformation—moving away from traditional export-oriented manufacturing toward a "Co-Production Model" characterized by joint manufacturing, joint investment, and shared risk with local U.S. industry chains.

  • Chu-Hsien Hsu (State of Arizona Taiwan Office): Highlighted that TSMC's Arizona plant turned a profit in 2025, generating $16.1 billion in revenue and securing a 35% tax credit. This is expected to further accelerate the U.S. expansion of supply chain partners, creating a strong cluster effect.

  • Chih-Ping Nieh (State of Texas Taiwan Office): Noted that the demand for AI infrastructure is driving a new wave of supply chain restructuring. Component and system manufacturers are rapidly setting up operations in Texas to support the development of large data centers and AI hardware.

  • QBS (U.S. Construction Company): Added a practical perspective, explaining that establishing a U.S. presence involves highly complex processes regarding site selection, construction, and local collaboration. The ability to quickly build local partnerships and execution capabilities will be the determining factor in the success of co-production.

  • Jason Hsu (Senior Fellow, Hudson Institute): Stated that against the backdrop of U.S. re-industrialization and heightened geopolitical risks, national security has become the core consideration in supply chain restructuring. Close cooperation within the Taiwan-U.S. defense supply chain is destined to become a major future trend.

[The Protection Aspect] The Core Issue of the Co-Production Era: Building Technology Firewalls and Preventing Industrial Hollowing-Out

Regarding "protection," the participating experts agreed that the critical question for enterprises is no longer simply "whether to invest in the U.S.," but rather how to maintain control over technology and operations amidst global expansion. Moving forward, Taiwanese companies must establish technology firewalls centered in Taiwan to ensure that core capabilities are not lost during overseas expansion.

  • Li-Ching Chang (CEO, IAILRF): Emphasized that as AI and data drive industrial development, data governance and sovereign AI will become integral parts of an enterprise's core competitiveness. Companies need to rethink data control rights and usage boundaries.

  • Hao-Sheng Wu (Partner, White Summers Caffee & James LLP): Analyzed that investing in the U.S. requires deep familiarity with relevant regulations, such as CFIUS (Committee on Foreign Investment in the United States) and the EAR (Export Administration Regulations). With CFIUS reviews becoming increasingly stringent, cautious handling is necessary. Furthermore, the use of controlled technologies could restrict a company's global sales and supply chain configurations, particularly in the semiconductor and AI sectors. Therefore, partnering with appropriate legal counsel is essential to mitigate risks and enhance efficiency during U.S. market entry.

  • Eugene Su (Executive Director, PwC Taiwan): Advised that Taiwanese businesses expanding into the U.S. should focus on four core areas: tax regulations, M&A and site selection, customs and trade, and talent organization. The key lies in utilizing early-stage planning to integrate investment structures, supply chain configurations, and local governance. By leveraging state-level incentives and tax planning, companies can shift from a contract-manufacturing mindset to localized operations, thereby reducing risks and laying the foundation for long-term growth.

  • Wei-Chi Chen (Senior Executive Vice President, Deloitte Taiwan): Stated that amidst the continuous growth in AI demand, Taiwanese companies heading to the U.S. should adopt a risk-oriented approach to fortify core competitiveness. This includes focusing on the control of advanced manufacturing processes, critical technologies, and design capabilities. By implementing a zero-trust mindset, cross-border data governance, and continuous monitoring mechanisms, companies can elevate the protection of trade secrets to a supply chain strategy level, preventing technology leaks and solidifying their dominant position in the global AI value chain.

From Manufacturing Role to System Participant: "2026 Taiwan-U.S. Manufacturing White Paper" to Offer Integrated Perspectives

Chao-Min Chu, Chairman of the IAILRF, expressed gratitude for the support of various partners and advocacy groups that made the forum possible, including Deloitte, PwC, Panshi Insurance Brokers, UnicoCell Biomed, QBS, and White Summers Caffee & James LLP.

Addressing the current fragmentation of market information, the Foundation announced it will release Taiwan's first comprehensive "2026 Taiwan-U.S. Manufacturing White Paper" this July. The publication will synthesize policy, industry, legal, and tax perspectives to propose concrete action plans, helping Taiwanese enterprises seize opportunities and mitigate risks amid ongoing supply chain restructuring.

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