In a move signaling a major shift in global tech manufacturing, NVIDIA—the world’s top producer of graphics processing units (GPUs) and AI chips—announced plans to construct two state-of-the-art “supercomputer manufacturing plants” in Texas. The facilities, set to rise in Dallas and Houston, are part of a sweeping initiative to bolster domestic supply chains and secure America’s role in the fast-accelerating artificial intelligence (AI) economy.
NVIDIA’s plans are backed by partnerships with Taiwanese manufacturing giants Foxconn and Wistron. The three companies aim to bring chip production closer to home, citing supply chain resilience and geopolitical pressures as key motivators. The move comes during heightened U.S.-China tensions and a surge in global demand for AI infrastructure.
“Manufacturing NVIDIA AI chips and supercomputers for American AI factories is expected to create hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades,” the company said in a statement released Tuesday.
The two new Texas facilities are expected to begin mass production in 12 to 15 months. No mention was made of federal subsidies or financial incentives, although the total private investment across AI infrastructure—announced as part of a broader tech coalition—is expected to reach $500 billion over the next four years.
NVIDIA founder and CEO Jensen Huang emphasized the strategic importance of the expansion. “These new American plants help us better meet the incredible and growing demand for AI chips and supercomputers, strengthen our supply chain, and boost our resiliency,” Huang said.
The announcement drew swift praise from both federal and state leaders. President Donald Trump posted on Truth Social, “All necessary permits will be expedited and quickly delivered to NVIDIA, as they will to all companies committing to be part of the Golden Age of America!”
Trump also recently softened certain export controls on NVIDIA chips to China—a reversal that reportedly followed a private dinner with Huang at Mar-a-Lago. Among the changes was the reauthorization of NVIDIA’s H20 AI chip for export. The chip, the most advanced AI processor U.S. companies are currently allowed to sell in China, has seen a spike in demand, particularly with the debut of China’s new DeepSeek AI model.
Texas Governor Greg Abbott hailed the development, calling the state a rising hub of tech innovation. “Texas is where the future of innovation is building,” Abbott said. “As demand for technologies powered by artificial intelligence continues to grow, we will work with industry leaders from around the globe to accelerate production, ensure supply chain resilience, and lead the American resurgence in advanced manufacturing from Texas.”
The announcement ties into Trump’s broader “Stargate Project,” a sweeping $500 billion public-private plan aimed at cementing American dominance in AI infrastructure. The project, announced earlier this year, includes key partners such as OpenAI CEO Sam Altman, SoftBank’s Masayoshi Son, and Oracle founder Larry Ellison.
NVIDIA’s Texas expansion marks a major moment in the reshoring of semiconductor production—a long-anticipated shift as trade tensions with China continue to escalate. With the Biden-era CHIPS Act laying groundwork for domestic tech investment and Trump doubling down on economic nationalism, chipmakers are increasingly looking to the U.S. for their next phase of growth.
Despite this optimism, the market hasn’t been without turbulence. Trump’s recent tariffs on physical goods have rattled global markets, with tech companies bracing for further levies on semiconductors. NVIDIA’s stock took a short-term dip following the announcement of the tariffs but has since stabilized amid excitement over the new domestic investments.
NVIDIA, now holding an estimated 70–90% of the global AI processor market, briefly became the world’s most valuable company by market capitalization earlier this year, peaking around $3.6 trillion. Much of its meteoric rise stems from its dominance in data center chip production—an essential component powering today’s AI revolution.
