TMEIC, a Toshiba and Mitsubishi Electric affiliate, announced plans to build an $85 million manufacturing facility in Texas to expand its production of power storage systems for data centers. The move marks a major step in strengthening local U.S. production amid rising demand from the artificial intelligence sector and growing trade tensions.
The new factory, set to begin operations in June 2026, will relocate capacity from TMEIC’s existing Texas site and add additional production lines. Once completed, annual output is expected to increase by 60%, reaching 2.4 gigawatts.
The investment comes as TMEIC prepares for higher U.S. tariffs under the Trump administration’s planned trade policies. The Texas plant will allow the company to shift some manufacturing away from Japan and mitigate tariff-related costs, which are estimated to range between 500 million yen ($3.53 million) and 1.5 billion yen annually.
The Texas facility will primarily manufacture uninterruptible power supply (UPS) systems designed to ensure electricity flows during outages—critical infrastructure for sectors like healthcare and finance. In addition to UPS systems, the new site will produce motor drive devices and house research and development laboratories to support future product innovation.
TMEIC plans to hire about 200 workers initially, with the workforce expected to grow to around 500 jobs by fiscal 2028. The company is also exploring options to source components domestically to further reduce reliance on parts from Japan and Mexico.
The expansion is part of TMEIC’s broader strategy to boost its U.S. sales from approximately 140 billion yen ($987 million) in fiscal 2024 to 250 billion yen ($1.76 billion) by fiscal 2030. Strengthening local production and procurement is seen as key to reaching these targets as the demand for advanced power solutions continues to grow.
TMEIC’s investment not only reinforces its long-term commitment to the U.S. market but also positions the company to better support industries driving the next wave of global technological innovation.
