Nvidia, a major player in the global artificial intelligence boom, announced Monday that it will begin manufacturing its AI supercomputers entirely within the United States for the first time. The company plans to invest up to $500 billion in domestic AI infrastructure over the next four years through a network of strategic manufacturing partnerships.
A significant portion of this expansion will center on Texas. Nvidia revealed plans to establish major supercomputing manufacturing operations in both Houston and Dallas. The company will partner with Foxconn in Houston and Wistron in Dallas, with mass production at both facilities expected to begin within 12 to 15 months, as reported by CNBC.
“Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency,” said Nvidia CEO Jensen Huang.
Texas’s role in this initiative reflects the state’s rising profile in the tech sector. Its favorable regulatory climate, skilled workforce, and expanding innovation ecosystem make it a strategic location for companies scaling cutting-edge technologies. Nvidia’s move aligns with a broader trend of major tech firms deepening their presence in the region.
Beyond Texas, Nvidia is also expanding in Arizona. The company has begun production of its Blackwell AI chips at Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Phoenix. Additionally, Nvidia is working with Amkor and Siliconware Precision Industries in the state to handle chip packaging and testing.
To enhance efficiency across these new operations, Nvidia will use its own technology to create “digital twins”—virtual replicas of its factories—and will deploy robotics for specialized automation tasks.
The announcement comes against the backdrop of shifting U.S. trade policies. Recently, President Donald Trump imposed steep tariffs as part of an effort to reduce trade deficits and bring more manufacturing back to the U.S. These included a 32% tariff on goods from Taiwan—where Nvidia currently produces most of its GPUs—and a 145% tariff on imports from China, moves that raised concerns for global tech companies including Apple and Nvidia.
However, Trump soon revised the policy, exempting semiconductors, smartphones, computers, and other tech products from the new tariffs. Despite this temporary relief, he suggested that specific tariffs on imported semiconductors may still be introduced in the near future.
While the White House praised Nvidia’s move as the “Trump effect in action,” the company declined to comment on whether the recent tariff policies influenced its decision to shift production to the U.S.
On the other hand, in the first weeks of March, the company has seen its stock price fall by 16% so far this year—even though it reported strong financial results. In just one day last week, the stock dropped 8%, despite the company beating expectations by generating $39.3 billion in revenue (a 78% increase) and reporting better-than-expected earnings. Since early 2023, Nvidia’s stock had surged over 600%, pushing its market value to around $3 trillion. However, it’s now down 27% from its recent peak, marking its lowest point since September 2024.
The decline is mainly due to concerns about former President Donald Trump’s proposed tariffs, which could affect chip exports, as well as fears that some of Nvidia’s chips may have been illegally sent to China. Investors are also worried about whether companies are over-investing in AI infrastructure without guaranteed returns. Although Nvidia has faced similar drops before—in 2018 and 2022—analysts believe the company’s newest Blackwell chips are still in high demand and that Nvidia continues to lead in AI hardware, suggesting the stock could recover in the future, according to The Economic Times.
Nevertheless, Nvidia’s investment signals a major transformation in its global manufacturing strategy and underscores Texas’s emerging importance in the future of artificial intelligence infrastructure.
