[News] Democrats Win Texas in U.S. Midterms, Putting Focus on Foxconn, Wistron, Wiwynn’s AI Server Expansion
Democrats, who often favor tighter regulation of AI data centers, have made major gains in the U.S. midterm elections, including a victory in Texas, a key manufacturing hub for Taiwanese contract manufacturers. According to Economic Daily News, Texas has attracted major Taiwanese manufacturers, including Wistron, Wiwynn, Foxconn, Inventec, and Compal, with generous investment incentives over the past two years. However, the recent political shift has raised questions about its potential impact on Taiwan’s AI server supply chain.
The election of Texas Governor-elect Gina Hinojosa has raised uncertainty over the state’s AI infrastructure outlook. According to Reuters, Hinojosa has pledged to halt new data center approvals until stronger community protections are adopted. The Texas Tribune notes that her proposals address water supplies, electricity costs, and community oversight, potentially creating new hurdles for AI infrastructure development.
Despite the uncertainty, Taiwanese manufacturers are pressing ahead with their Texas investments. According to Commercial Times, Foxconn, Pegatron, Compal, Wistron, and Wiwynn are maintaining expansion schedules, with combined commitments exceeding US$7 billion. Pegatron’s Texas facility is already shipping NVIDIA GB200 and GB300 systems, while Compal targets trial production in the fourth quarter of 2026 and mass production in the first quarter of 2027.
Institutional investors cited by Commercial Times believe AI’s strategic importance remains unchanged, but future policies may place greater emphasis on balancing growth with risk management, particularly in data center approvals, power availability, and cost-sharing requirements.
TrendForce warns that state-level data center policies could tighten following the elections, with Texas, Ohio, and Georgia potentially introducing moratoria on new projects. Together, the three states account for a significant share of planned U.S. data centers. While most projects scheduled for 2027 are already under construction, those planned for 2028 and beyond face greater delay risks, depending on whether the proposed restrictions take effect.
Taiwanese Manufacturers Press Ahead with Texas AI Expansion
Against this backdrop, major Taiwanese manufacturers are continuing to expand their U.S. production footprints. Foxconn Chairman Young Liu previously said the company operates six factories in Houston, with further expansion underway. Its Texas AI operations focus on Level 11 (rack integration) and Level 12 (cluster integration), while expansion in the U.S. and Mexico is driven primarily by new AI business demand, Economic Daily News highlights.
Wistron inaugurated its D1 factory in Fort Worth, near Dallas, in July, marking its first U.S. manufacturing facility. Economic Daily News notes that President and CEO Jeff Lin expects the larger D2 facility to begin operations in 2027, with a potential D3 facility depending on orders. Meanwhile, Wiwynn opened its new facility in Socorro, near El Paso, in September, with a second building expected to begin production in the second quarter of 2027, the report notes. Its long-term Texas campus plan, covering existing and future facilities, calls for more than 1.7 million square feet of total floor space.
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(Photo credit: Foxconn)
