Hota Industrial Manufacturing to Invest $99 Million in First U.S. Factory in New Mexico, Strengthening Ties with Tesla, Ford, and GM
The Taiwanese Auto Parts Giant Ventures Into North America's Burgeoning Electric Vehicle Industry, Capitalizing on Strategic Regional Production and U.S. Tax Incentives
Hota Industrial Manufacturing, a renowned Taiwanese gear and auto parts manufacturer with a history of collaboration with automotive giants like Tesla, Ford, and General Motors, is set to make its maiden foray into the U.S. market. The company has unveiled plans to invest a substantial $99 million in constructing its first-ever factory outside of Asia, right in the heart of New Mexico.
The impending establishment of Hota’s New Mexico plant is not only a milestone for the company but also a strategic move aimed at capitalizing on the evolving landscape of regional production within supply chains. This shift has been significantly influenced by the lasting impact of the COVID-19 pandemic and the ongoing U.S.-China trade war, which have prompted companies to reassess their global operational strategies.
Chairman David Shen, the visionary leader at the helm of Hota Industrial Manufacturing, expressed the company’s reasoning behind this pivotal decision. He stated, “With three years of COVID-19 and the U.S.-China trade war changing globalization and creating regional supply chains, we restarted our thinking about going to the United States to make a deeper investment.”
Hota’s ambitious timeline involves commencing construction of the New Mexico plant as early as 2024. The chosen location for this cutting-edge facility is Santa Teresa, strategically positioned near the U.S.-Mexico border. By 2025, Hota envisions this plant being fully operational, churning out essential gear and auto parts.
Shen emphasized the paramount importance of establishing a North American presence for Hota, especially in light of the burgeoning electric vehicle (EV) industry in the United States. He revealed that North America presently contributes a significant 60% of the company’s total sales, underscoring the strategic significance of this move.
James Huang, Chairman of the Taiwan External Trade Development Council, shares Shen’s optimism about New Mexico’s role in the U.S. electric vehicle supply chain. He believes that New Mexico’s strategic positioning, coupled with the incentives introduced by the Inflation Reduction Act (IRA) in the United States, will make it a pivotal hub for EV manufacturing and battery cell production. The IRA’s EV tax incentives aim to entice automakers into establishing robust EV supply chains across North America and countries with free trade agreements with the United States.
New Mexico, fully embracing this opportunity, plans to provide $3 million in funding to support Hota’s plant. Furthermore, the state is actively exploring additional tax credits to encourage the growth of this crucial sector.
New Mexico Governor Michelle Lujan Grisham expressed her optimism about the collaboration, stating, “We have the right infrastructure to meet the growing demands of Taiwanese companies, and their manufacturing expertise is very beneficial because we don’t start it from scratch. We can’t compete with the Gear King,” highlighting the unique advantages Hota Industrial Manufacturing brings to the region.
