In response to U.S. tariffs, Datong accelerates its capacity layout in the United States by selecting partners in the power industry through KPMG.
- byVic

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Datong is accelerating its layout in the U.S. market. In response to reciprocal tariffs, it has signed a contract with KPMG, a joint accounting firm, to advance its U.S. power project. The company will seek partners through KPMG, with a priority on local heavy machinery companies, and plans to enter the market through mergers, acquisitions, or equity investments, actively seizing opportunities in the U.S. power sector. Forecasts indicate that power demand in the U.S. will significantly increase in the coming years. Datong has also established a business team in the U.S. and is developing operations in the West and Texas. The company emphasizes a risk diversification strategy by establishing bases in multiple locations to reduce reliance on a single market and continuously expand its overseas business.
The United States implements reciprocal tariffs, impacting Taiwan with a tax rate of 32%, prompting Tatung Company to accelerate its industrial layout in the U.S. Recently, Tatung completed a cooperation agreement with KPMG Taiwan, aiming to promote its strategic investment plan in the U.S.
Tatung stated it will use the accounting firm to select the best partners in the U.S. power industry, targeting local heavy electrical manufacturers in the U.S. capable of producing transformers and wires and cables. The plan is to quickly engage through mergers and acquisitions or equity investments and to finalize the selection of strategic partners and related investment compliance steps as soon as possible, in order to actively seize opportunities in the U.S. power market.
According to forecasts from the U.S. Department of Energy, the power demand for AI servers will grow by 4 to 8 times between 2023 and 2028, while a consulting company specializing in U.S. energy strategy also estimates that power demand in the U.S. could increase by 128GW in the next five years. By 2029, overall power demand is expected to rise by 15.8%. Tatung believes that reciprocal tariffs will encourage other countries to invest more in the U.S., hence it is optimistic about the U.S. power equipment market.
In response to the reciprocal tariffs, Tatung began its strategic layout last year, planning to quickly respond to market changes by acquiring or strategically investing in local heavy electrical plants in the U.S., and jointly exploring electrical business opportunities with partners. The company has successfully formed a U.S. heavy electrical business team, targeting power companies and enterprise transformer projects in the Western U.S. and Texas, having already received orders from American customers in the first quarter.
Tatung indicated that if it can collaborate with local strategic partners in the U.S., transformers and wires and cables could be produced or assembled directly in the United States. Additionally, the company is implementing a risk diversification strategy by establishing locations in Japan, Southeast Asia, and the Middle East to avoid excessive business concentration and forming alliances with local companies to secure orders from power companies and private enterprises, with visibility expected to extend to 2027.
Tatung emphasizes that predicting international conditions and industry trends is its strength, feeling confident in aligning with the local production policies of the U.S. government, and aims to maximize avoidance of tariff impacts. Diversifying geopolitical risks and optimizing the balance of domestic and international revenue are important strategies for current operations, and the company will continue to work hard to expand its overseas business footprint.