Hota Industrial Mfg. Co., a prominent supplier to electric vehicle (EV) giants like Tesla, GM, and Ford, has announced a groundbreaking move, investing a substantial $99 million in constructing its first-ever manufacturing plant outside of Asia.
This bold venture will be located in the American state of New Mexico, signaling a profound shift towards regional production within global supply chains.
Hota, renowned for crafting gears and automotive components in Taiwan, is set to commence the construction of this state-of-the-art facility in Santa Teresa, close to the U.S.-Mexico border, early next year, with full-scale production slated for 2025.
David Shen, the Chairman of Hota, shared his insights during a press conference in Taipei, revealing that the evolving landscape of global trade, influenced by the COVID-19 pandemic and the U.S.-China trade tensions, prompted the company to reassess its strategic investments.
Proximity to their North American customer base, responsible for a significant 60% of Hota’s total sales, along with the flourishing U.S. EV industry, played pivotal roles in this decision.
New Mexico Governor Michelle Lujan Grisham expressed her excitement regarding the development, highlighting the advantages of a skilled local workforce and established infrastructure in the state, making it an ideal location for Hota’s expansion.
The state has pledged $3 million in funding for this endeavor, with additional tax credits on the horizon.
In neighboring Arizona, Taiwanese semiconductor giant TSMC has committed a staggering $40 billion investment in constructing two chip manufacturing plants, a significant boost to the U.S. semiconductor industry.
Hota’s decision to set up operations in New Mexico underscores the state’s emergence as a vital hub within the American EV supply chain.
James Huang, Chairman of the Taiwan External Trade Development Council, emphasized the importance of the EV sector in fostering bilateral trade relations, particularly in New Mexico.
He believes that this investment will solidify New Mexico’s standing as a pivotal player in the U.S. EV industry.
In conclusion, Hota’s strategic move to establish a manufacturing plant in New Mexico reflects the changing dynamics of global supply chains, as well as the growing prominence of the American EV market.
With the backing of state support and the rich automotive expertise of Taiwanese companies, this investment is poised to have a profound impact on the future of EV production in the United States.