TAIPEI (Taiwan News) — Inventec announced Monday that its board has approved an investment of up to NT$2.75 billion (US$85 million) for its US subsidiary to set up a facility in Texas for server-related products.

The contract manufacturer said the expansion aims to strengthen global deployment, win new clients, and reduce exposure to tariff policy shifts, per CNA. The injection, planned between May and December, will be funded through operating capital and bank loans.

The company said that production timing and additional machinery investments are still under internal review, per Liberty Times.

Inventec added that because of the significant investment scale, its US unit needed board authorization before proceeding. The initial NT$2.75 billion commitment does not include future investments in equipment and facilities, it said.

Following the board’s decision, Inventec joins Foxconn and TSMC in expanding US manufacturing footprints. Currently, the company operates a factory in Mexico producing servers, laptops, and automotive electronics.

As early as January, Inventec had begun studying US manufacturing options, citing the high transport costs and challenges with shipping large servers.

Across the broader industry, major contract manufacturers have increased their US investments, with Foxconn maintaining the longest presence in Texas. Quanta operates plants in California and Tennessee, while Wistron upgraded a Texas facility last year.