Nvidia Doubles Down on Texas as Chip Tariffs Loom
As former President Trump signals plans to slap tariffs on foreign-made semiconductors, Nvidia is making a strategic move to expand its U.S.-based production, announcing two new factories in Texas focused on AI supercomputing components.
The first facility will be established in Houston in collaboration with Foxconn, a known Apple supplier. The second plant, located in Dallas, will be developed with support from Taiwanese electronics manufacturer Wistron.
Together, the sites will offer over a million square feet of manufacturing space, aimed at building AI supercomputers and testing chips produced by Taiwan’s TSMC, which itself is constructing six chip plants in Arizona.
According to a company statement released Monday, both factories are expected to enter mass production within 12 to 15 months.
Nvidia CEO Jensen Huang highlighted that this marks the first time the company will produce AI supercomputers entirely on American soil. “Bringing manufacturing to the U.S. helps us meet surging demand for AI chips, enhances supply chain strength, and improves overall resilience,” he noted.
The timing also helps Nvidia brace for potential trade disruptions. Trump recently threatened sweeping tariffs—including a combined 145% on Chinese goods—though he later scaled back with exemptions for electronics and PC parts. Nonetheless, administration officials have indicated tariffs on foreign-made semiconductors could still be implemented within weeks.
With a large share of Nvidia’s manufacturing currently based in Asia, such tariffs could significantly impact the company. But Huang hinted last month that Nvidia was already planning a shift toward more domestic production, especially as AI demand from companies like OpenAI continues to surge.
The company also revealed plans to generate as much as $500 billion worth of AI infrastructure in the U.S. over the next four years.
Still, Nvidia didn’t mention any intentions to move consumer GPU production to the U.S., where most graphics cards are still made in China. However, several PC hardware brands have begun relocating production to countries like Vietnam and Taiwan in an effort to sidestep potential trade penalties.
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