As Pres. Donald Trump prepares to impose tariffs on foreign-made semiconductors, Nvidia has announced plans for two new factories in Texas focused on manufacturing components for AI supercomputers.
Nvidia will construct the first factory in Houston in collaboration with iPhone supplier Foxconn. The second factory will be located in Dallas and will be built with Taiwanese electronics manufacturer Wistron.
The facilities will span “more than a million square feet of manufacturing space,” with the goal of building AI supercomputers and test chips from Taiwan’s TSMC, which is developing six semiconductor fabrication plants in Arizona.
“Mass production at both plants is expected to ramp up in the next 12-15 months,” Nvidia said in a statement on Monday.
Nvidia CEO Jensen Huang said the investment is the first time the company will build AI supercomputers entirely in the U.S.
”Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts resiliency,” he said.
The move to the U.S. will also assist the chipmaking giant in avoiding Trump’s trade war.
Last week, the president threatened to impose significant tariffs on several countries, including a 145 percent tariff on Chinese imports, but then quickly changed course and issued exemptions for electronics and PC parts.
The Nvidia CEO reportedly struck a deal with the Trump administration to avoid tariffs on the company’s H20 chips. According to NPR, Huang met with Trump at the Mar-a-Lago resort to finalize an agreement whereby the chips could still be exported from China if the company promised to invest in new AI data centers in the U.S.
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Nvidia Taps Houston for New AI Supercomputer Factory
Nvidia CEO Jensen Huang said the investment is the first time the company will build AI supercomputers entirely in the U.S.
