Nvidia Expands AI Supercomputer, Chip Production in Texas and Arizona

Days after President Donald Trump issued sky-high tariffs on China, Nvidia has announced plans to produce supercomputers entirely in the U.S., with two new factories in Texas.

Nvidia, an American corporation that makes chips for artificial intelligence, has secured over "one million square feet of manufacturing space to build and test Nvidia Blackwell chips in Arizona and AI supercomputers in Texas," according to Monday's press release.

Nvidia has partnered with two other global companies for the Texas manufacturing plants. The company says it is working with iPhone supplier Foxconn in Houston and Taiwanese electronics manufacturer Wistron in Dallas.

Mass production at the two Texas factories "is expected to ramp up in the next 12-15 months," Nvidia says.

In Phoenix, Nvidia has already begun production at chip plants owned by Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest dedicated semiconductor foundry. In addition to Nvidia, TSMC produces chips for other leading tech companies like Apple. In Arizona, the Taiwan company is developing six semiconductor fabrication plants, Chron reports.

For packaging and testing operations in Arizona, Nvidia is also partnering with leading outsourced semiconductor assembly and test (OSAT) company Amkor and another Taiwan company, Siliconware Precision Industries Co., Ltd (SPIL).

Through these partnerships with leading global companies, Nvidia aims to "produce up to half a trillion dollars of AI infrastructure" in the U.S. within the next four years, the company said Monday. The supercomputers built in Texas will act as data centers solely dedicated to AI.

Nvidia predicts the three new sites will together "create hundreds of thousands of jobs and drive trillions of dollars in economic security in the coming decades." The company's founder and CEO, Jensen Huang, emphasized the benefits of expanding operations in the country.

"The engines of the world's AI infrastructure are being built in the United States for the first time," Huang said. "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."

In expanding U.S. operations, Nvidia will avoid more consequences of the trade war. Shortly after Trump raised China's tariffs to a staggering 125%, China and the European Union retaliated with 84% and 25% tariffs respectively. The EU has since paused countermeasures until July 14.