In response to growing pressure from potential tariffs on foreign-made semiconductors, Nvidia has announced plans to build two large-scale manufacturing facilities in Texas. The move comes as the U.S. government, under President Trump, signals it may impose significant import duties on chips and electronics made overseas.
Nvidia’s new factories will be located in Houston and Dallas. The Houston plant will be developed in collaboration with Foxconn, a major supplier in the tech hardware space. The Dallas site will be constructed alongside Wistron, a Taiwan-based electronics manufacturer. Combined, the two sites are expected to span over one million square feet and focus on the assembly of AI supercomputers and chip testing.
Mass production at the new facilities is scheduled to ramp up within 12 to 15 months, according to Nvidia. The company aims to reduce its reliance on Asian-based manufacturing—particularly in light of its current dependency on components from Taiwan’s TSMC, which is also building multiple fabs in Arizona.
This marks the first time Nvidia will fully manufacture AI supercomputing hardware within the United States. CEO Jensen Huang emphasized that the domestic expansion will help the company meet rising demand for AI infrastructure while adding resilience to its supply chain. He also noted that the shift aligns with broader industry efforts to localize key production capabilities.
The timing of the announcement is no coincidence. The Biden administration has hinted at loosening tech trade restrictions, but Trump has made it clear he intends to implement tariffs on foreign semiconductors if re-elected. Recent statements from the Trump camp suggest that tariffs targeting chips and electronics could be enacted within weeks, potentially raising costs for companies like Nvidia, which depend heavily on manufacturing in Asia.
Nvidia also revealed that over the next four years, it plans to produce up to $500 billion worth of AI infrastructure in the United States. The expansion will help meet demand from enterprise clients such as OpenAI and other AI-focused firms that rely on high-performance GPUs.
Notably, the announcement does not include any immediate plans to manufacture consumer-grade GPUs in the U.S. These products, including GeForce graphics cards, continue to be produced primarily in China. However, Nvidia’s move reflects a broader trend among PC hardware companies, many of which are actively relocating manufacturing to Vietnam, India, or Taiwan in anticipation of tighter U.S. trade policies.
The new Texas facilities represent a significant step in Nvidia’s attempt to localize production and hedge against geopolitical risks—while staying ahead in the rapidly growing AI hardware sector.
