SANTA CLARA, CALIF. — NVIDIA Corp. (NASDAQ: NVDA), a Santa Clara-based tech firm that primarily designs and manufactures graphics processing units (GPUs) for artificial intelligence (AI) use, plans to develop two new AI supercomputer manufacturing plants in Texas. The new projects will include a plant in Houston that NVIDIA is co-developing with Foxconn and a factory in Dallas that NVIDIA is building with Wistron.
Further real estate specifics for the new facilities were not shared, but NVIDIA plans to create “digital twins” to design and operate the factories, which will be reliant on automation and robotics. Mass production of NVIDIA AI supercomputers at both plants is expected to ramp up in the next 12 to 15 months, according to NVIDIA.
Additionally, NVIDIA announced that it has started production of NVIDIA Blackwell chips at the TSMC Arizona campus in Phoenix. NVIDIA is partnering with Amkor and SPIL for packaging and testing operations in Arizona.
The new Texas plants and the production of NVIDIA Blackwell chips in Arizona are part of the company’s $500 billion push to mass produce NVIDIA AI supercomputers on U.S. soil, which would represent the first time that the company’s supercomputers were made entirely domestically. Together, the announcements call for more than 1 million square feet of new manufacturing space to come on line over the next four years.
The company predicts the domestic push will create thousands of jobs and generate “trillions of dollars” in economic security over the coming decades.
“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,” says Jensen Huang, founder and CEO of NVIDIA.
The White House published a blog post that called NVIDIA’s pledge “the Trump effect in action.”
NVIDIA’s announcement comes a month after TSMC announced its $100 billion investment in U.S. semiconductor fabs (i.e. manufacturing plants), SpaceX’s $280 million expansion of its Starlink semiconductor research-and-development facility in Bastrop, Texas and Apple’s $500 billion pledge for U.S. investment, including a new manufacturing facility in Texas.
“Onshoring these industries is good for the American worker, good for the American economy and good for American national security — and the best is yet to come,” wrote the White House.
NVIDIA AI supercomputers are described as the “engines” of a new type of data center created for the sole purpose of processing AI. The company expects tens of “gigawatt AI factories” to be built in the coming years.
Founded in 1993, NVIDIA employed roughly 30,000 employees at year-end 2024. NVIDIA’s stock price closed on Monday, April 14 at $110.71 per share, up from $86 a year ago, a 28.7 percent increase.
— John Nelson