Taiwan Tech Firm Builds Non-China Supply Chain as It Expands in New York

Taiwanese technology company SteadyBeat Technology is expanding its U.S. operations through a non-China supply chain while seeking a presence in Orange County, New York, and developing local artificial intelligence (AI) and engineering talent.

The company says its approach comes with significantly higher costs, but SteadyBeat has no plans to return to Chinese suppliers.

On Sept. 18, SteadyBeat signed two memoranda of understanding in Hsinchu, a city in northwestern Taiwan.

One agreement, with Orange County and the Orange County Partnership, will explore establishing an operating or research and development site in the county.

The second agreement, with Fei Tian College’s Northern Campus, will focus on talent development and potential applied research in AI, autonomous systems, and related technologies.

For Chairman George Hsueh, the agreements are part of a broader effort to build a U.S. base for technologies ranging from AI and autonomous vehicles to maritime and underwater applications, while maintaining a supply chain that does not depend on China.

“We already have our supply-chain list,” Hsueh said, naming India, Europe, Japan, and the United States as sources the company is exploring. “It is a direction already. It’s impossible to move back.”

Non-China Supply Chain Despite Higher Costs

SteadyBeat defines its approach through three “zeros”: zero Chinese capital, zero Chinese supply-chain sources, and zero Chinese customers. Hsueh said the company looks beyond the country where a finished component is made and tries to trace the origins of materials and other parts further down the supply chain.

This approach creates significant cost challenges because China remains deeply integrated into global manufacturing.

“It’s a cost issue, because China dominates manufacturing,” Hsueh said.

He said some customers compare SteadyBeat’s prices with products sold on Chinese e-commerce platforms or use DJI products as a price benchmark. The company has to explain that a product built under strict non-China supply-chain standards can have a very different cost structure.

Therefore, the company is continuing to search for alternative suppliers. Hsueh said they have identified sources in India, Europe, Japan, and the United States. However, some potential suppliers in Vietnam, Singapore, and South Korea require further review because of concerns about their ties to China.

Cameras are one example of the cost difference. According to Hsueh, comparable products from Japan and Europe can cost about 10 times as much as Chinese alternatives. Although Taiwanese suppliers may be able to manufacture some products, production volume can significantly impact price.

Despite these costs, SteadyBeat does not intend to reverse its policy.

“In the U.S., of course, it’s easier,” Hsueh said of customers’ willingness to accept higher prices. He added that Europe is also relatively receptive, while Taiwan remains the most difficult market because customers are more sensitive to price differences.

The company’s approach extends beyond components and materials. Hsueh and other participants described local talent and research partnerships as another way to build a technology ecosystem with less dependence on China.

Orange County Offers a US Base

The Orange County agreement will allow SteadyBeat to evaluate potential business and R&D opportunities in the Hudson Valley. The county and the Orange County Partnership will help the company assess local sites, infrastructure, and labor resources, and connect with government programs, research institutions, potential customers, and other business partners.

On Sept. 18, New York’s Orange County delegation signed two memoranda of understanding with SteadyBeat Technology in Hsinchu, Taiwan. From left to right: SteadyBeat Technology Chairman George Hsueh, Orange County Executive Steve Neuhaus, and Orange County Partnership President and CEO Conor Eckert. Austina Tai/The Epoch Times

According to Orange County Executive Steve Neuhaus, the county aims to attract companies, jobs, and innovation by leveraging its location in the northeastern United States.

“We’re serious about attracting companies and new jobs and innovation,” Neuhaus said. “We’re in the heart of the Northeast. We’re near New York City. We’re near Washington, DC.”

Neuhaus also highlighted West Point, the U.S. Military Academy, as an important source of talent and research in the region. He mentioned that Orange County is in talks with companies from around the world considering investing in the Hudson Valley because of its proximity to that expertise.

According to Hsueh, SteadyBeat has considered more than 10 U.S. locations, including places on both the East and West coasts and in Florida. He said the company decided to sign with Orange County after about two months of discussions.

“We always say it’s the speed that decides everything,” Hsueh said.

The county’s location offers practical advantages for Taiwanese companies. Hsueh noted its proximity to New York City and its access to the New York metropolitan area via John F. Kennedy International Airport. Neuhaus also pointed to Stewart International Airport as another potential asset.

Building Local AI Talent Pipeline

SteadyBeat’s second MOU, with Fei Tian College, focuses on developing local talent and exploring potential research collaborations.

The proposed programs include short courses, workshops, industry talks, student projects, internships, and industry mentoring. Areas under discussion include AI, software and hardware development, system integration, testing, autonomous unmanned vehicles, and product development.

The two institutions will also explore applied research involving technology studies, proof-of-concept work, prototype testing, and software and hardware verification.

Hsueh said SteadyBeat expects to collaborate with professors and laboratories and involve graduate and undergraduate students. Students participating in relevant projects may have the opportunity to join the company and continue their research after graduation.

“We prefer to hire locally,” he said.

As it develops its U.S. operation, the company expects to bring only one or two engineers from Taiwan, with most future hiring expected to come from the local workforce.

Hsueh said SteadyBeat and the university have established 30-, 60-, 90- and 180-day goals for developing the partnership. He expects to return to the United States within about a month with more detailed proposals.

SteadyBeat Technology signed a memorandum of understanding with Fei Tian College's Northern Campus in New York. In the photo, SteadyBeat Technology Chairman George Hsueh is on the left, and Fei Tian College's Director of Strategic Development Sean Lin is on the right. Austina Tai/The Epoch Times

AI and Autonomous Systems

SteadyBeat describes itself as a technology company focused on IC design and AI, rather than as a traditional hardware manufacturer. Hsueh said that SteadyBeat develops AI systems with partners and applies them to autonomous and unmanned platforms.

The company’s areas of work include acoustic AI, multimodal AI, embedded AI systems, AI hardware, real-time 3D modeling, autonomous unmanned vehicles, underwater acoustics, and space-related AI applications.

Hsueh said the company already has prototypes and demonstrations and is now looking for larger markets and a path toward manufacturing.

Neuhaus said autonomous technology could have applications in emergency response and other security-related areas. He said U.S. organizations are increasingly seeking alternatives to technology with long-term ties to China.

He also said potential cooperation would depend on companies demonstrating that their products can compete effectively on price and performance.

“It’s a chicken-and-egg type of thing,” Neuhaus said. “We need to see a demonstration that it can work and be competitive with the other platforms we’re using. Then, we can start making some great arrangements to grow further.”

Neuhaus said such arrangements would be handled case by case, rather than through a single agreement covering all Taiwanese companies.

Hsueh said SteadyBeat has already used a similar model in Taiwan, collaborating with academic researchers to test its technology and share results with relevant organizations. He hopes to develop comparable cooperation in Orange County.

From Supply Chains to Market Access

For SteadyBeat, the Orange County partnership means more than just establishing a presence in the United States. The company is seeking to build a broader ecosystem involving local talent, researchers, suppliers, potential customers, and manufacturing partners.

At the same time, SteadyBeat is committed to maintaining a supply chain that does not depend on China, even when doing so increases product costs.

This approach aligns with the concerns raised by U.S. officials about reducing dependence on China for technology used in sensitive areas, such as emergency response and autonomous systems, as Neuhaus pointed out.

The two MOUs provide a framework for developing that relationship in the United States. Specific investments, training programs, and research projects will still require further evaluation, approvals, and formal agreements.

Austina Tai contributed to this report.