- Nvidia will build over 1M SF of manufacturing space in Houston and Dallas in partnership with Foxconn and Wistron Corp.
- The new facilities aim to support domestic production of Nvidia’s AI supercomputers, with mass production expected within 12–15 months.
- The move follows the imposition of a 145% tariff on Chinese goods and reflects a broader trend of onshoring US tech infrastructure.
In response to rising US tariffs on Chinese goods, Nvidia will expand US manufacturing, as reported by Bisnow. The company revealed it will build over one million SF of AI supercomputer production facilities in Texas, marking a pivotal shift for the Silicon Valley-based chipmaker.
Texas-Sized Expansion
Nvidia is partnering with Foxconn and Wistron Corp. to construct advanced production plants in Houston and Dallas. Once completed, these facilities will allow Nvidia to produce its AI supercomputers entirely within the United States—mitigating risks tied to overseas supply chains and mounting trade tensions.
Nvidia CEO Jensen Huang said, “The engines of the world’s AI infrastructure are being built in the United States for the first time.” The company plans to begin mass production in 12 to 15 months.
The Tariff Effect
The announcement comes in the wake of sweeping new trade policies from President Donald Trump, including a 145% tariff on Chinese goods. Although the White House temporarily exempted some key technologies from these tariffs, the administration clarified the relief would be short-lived.
In a Truth Social post, Trump wrote: “There was no Tariff ‘exception’ announced on Friday… These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’”
A Complex Supply Chain Shift
While Nvidia’s next-gen Blackwell chips have begun production at TSMC’s Phoenix plant, the company still relies heavily on Taiwan for manufacturing. Amkor Technology and Siliconware Precision Industries Co. are partnering with Nvidia in Arizona to handle chip packaging and testing.
Despite the 90-day tariff pause announced last week, experts caution that the window is too short to significantly alter infrastructure or planning timelines for multibillion-dollar facilities.
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Market Reaction
Investors responded positively to the news, with Nvidia’s stock surging 18.7% following the tariff pause. However, shares remain down nearly 25% from their January peak—underscoring the broader uncertainty in global tech markets.
Why It Matters
Nvidia is moving production to the US to avoid trade friction and meet growing AI infrastructure demand. The US manufacturing push represents a broader trend among tech giants to localize production amid rising geopolitical and economic pressures.
What’s Next
Nvidia’s Texas buildout may lead a wave of US tech manufacturing sparked by rising protectionist trade policies. As the AI arms race accelerates, expect more companies to follow Nvidia’s lead in reshoring high-tech infrastructure.
