Nvidia has unveiled plans to establish two new factories in Texas dedicated to manufacturing components for AI supercomputers, as President Donald Trump considers imposing tariffs on foreign-made semiconductors. This strategic move will see one facility constructed in Houston, in partnership with iPhone supplier Foxconn, and another in Dallas, collaborating with Taiwanese electronics manufacturer Wistron.
These factories will boast over a million square feet of manufacturing space, focusing on the production of AI supercomputers and test chips from Taiwan’s TSMC, which is concurrently developing six semiconductor fabrication plants in Arizona. Nvidia expects mass production at these locations to accelerate within the next 12 to 15 months.
Nvidia CEO Jensen Huang emphasized the significance of this investment, marking the first occasion the company will manufacture AI supercomputers entirely within the United States. He remarked, “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts resiliency.”
Strategically relocating production to the U.S. allows Nvidia to navigate potential challenges posed by Trump’s impending trade tariffs. The president recently indicated plans to levy substantial tariffs on various countries, including a proposed 145 percent tariff on Chinese imports, although he later granted exemptions for electronics and PC parts.
In a move to secure favorable terms, Jensen Huang reportedly negotiated with the Trump administration to avoid tariffs on Nvidia’s H20 chips. Reports suggest that Huang met with President Trump at the Mar-a-Lago resort, concluding an agreement that permits continued export of these chips from China, contingent upon Nvidia’s commitment to investing in new AI data centers on American soil.
This development underscores Nvidia’s proactive approach to expanding its manufacturing capabilities, ensuring robust supply chain management, and mitigating potential trade disruptions, all while reinforcing its commitment to meeting the surging demand for advanced AI technologies.
