Why Hota is Building a Plant in the US
Tesla supplier Hota Industrial Mfg. Co is building its first US plant in New Mexico, citing the greater emphasis on regional production in supply chains. The company, which makes gears and other auto components primarily in Taiwan, said it would begin construction on the factory in Santa Teresa, near the US border with Mexico, early next year and mass production in 2025.
Hota Chairman David Shen told a news conference in Taipei on Wednesday that the company decided to build a US plant after three years of COVID-19 and the US-China trade war changed globalization and created regional supply chains.
“We restarted our thinking about going to the United States to make a deeper investment,” Shen said.
Other factors that contributed to Hota’s decision to build a US plant include proximity to North American customers, which account for 60% of Hota’s sales, and the flourishing US electric vehicle (EV) industry.
Proximity to Customers and EV Industry Key Factors
New Mexico Governor Michelle Lujan Grisham said in an interview with Reuters that the state has the right infrastructure to meet the growing demands of Taiwanese companies and that their manufacturing expertise is very beneficial.
“We can’t compete with the Gear King,” Lujan Grisham said, referring to Shen’s nickname in Taiwan.
The state is providing $3 million in funding for Hota’s new plant, with the potential for additional tax credits.
Benefits for New Mexico
Hota’s investment in New Mexico is expected to create 350 jobs and have a significant impact on the local economy. The plant will also help to position New Mexico as a leader in the US EV industry.
Impact on US-Taiwan Trade
Hota’s investment is a further sign of the strong and growing US-Taiwan trade relationship. Taiwan is the US’s 11th largest trading partner, and the two countries have close ties in a range of sectors, including technology, semiconductors, and trade.
James Huang, chairman of the Taiwan External Trade Development Council, said that EVs would be an important focus for bilateral trade and especially in New Mexico.
“New Mexico will become a very important stronghold for the U.S. electric vehicle supply chain, so the future impact of these investments between Taiwan and the United States will be wide-ranging,” Huang said on the sidelines of a U.S.-Taiwan business forum on Tuesday.
Hota a Key Supplier to Tesla, GM, and Ford
Hota is a key supplier to Tesla, GM, and Ford, and its new US plant is expected to help meet the growing demand for EV components. The company’s products are used in a variety of EV components, including transmissions, differentials, and axles.
Conclusion
Hota Industrial Mfg. Co’s new US plant is a significant development for both the company and the US-Taiwan trade relationship. The plant will create jobs, boost the local economy, and contribute to the US’s efforts to strengthen its domestic supply chain. The plant is also expected to help meet the growing demand for EV components.
The investment also highlights the growing importance of the electric vehicle (EV) industry. Hota is a key supplier to Tesla, GM, and Ford, and its new plant will help to meet the growing demand for EV components.
The US-Taiwan trade relationship is strong and growing. Taiwan is the US’s 11th largest trading partner, and the two countries have close ties in a range of sectors, including technology, semiconductors, and trade. Hota’s investment is a further sign of the close economic ties between the two countries.
Future Impact
Hota’s investment in New Mexico is expected to have a significant impact on the state’s economy and its position in the US EV industry. The plant is expected to create 350 jobs and boost the local economy by millions of dollars. The plant will also help to establish New Mexico as a leader in the US EV industry, as it will be one of the few states in the country with a dedicated EV component manufacturing plant.
Hota’s investment is also expected to have a positive impact on the US-Taiwan trade relationship. The investment is a sign of the strong economic ties between the two countries and their commitment to working together to strengthen their supply chains. The investment is also expected to lead to increased trade between the two countries, as Hota will need to import raw materials and components from Taiwan for its new US plant.
Overall, Hota’s investment in New Mexico is a positive development for both the company and the US-Taiwan trade relationship. The investment is expected to create jobs, boost the local economy, and strengthen the US’s domestic supply chain. It is also expected to have a positive impact on the US-Taiwan trade relationship.
Alexander focuses on breaking news stories and ensuring we offer timely reporting on some of the latest stories released through market wires. He has previously spent over 5 years as a trader in us stock market and is now semi-retired. Now he works for investingbizz.com specializing in quicker moving active shares with a short term view on investment opportunities and trends. He covers financial sector news.