Everything’s bigger in Texas — especially Nvidia’s new $500 billion AI factories

Nvidia, the AI chip manufacturing giant, recently announced plans to build new AI factories in Dallas and Houston. These plans represent a significant advancement in the production of AI supercomputers entirely within the United States.

In its announcement, Nvidia revealed plans to partner with Wistron in Dallas and Foxconn in Houston. Other partners include TSMC, Amkor, and SPIL. Wistron is a Taiwanese information and communications technology company headquartered in Taipei, while Foxconn is the world’s largest electronics manufacturer, focusing on research and development.

This announcement marks Nvidia’s latest step in its long-term plan to produce half a trillion dollars’ worth of AI infrastructure in the coming years. The move underscores a growing push to relocate critical high-tech manufacturing back to U.S. soil, amid rising global tensions and increasing demand for secure, domestic supply chains.

Nvidia’s AI supercomputers, billed as “the engines of a new type of data center,” are anticipated to serve as the hub of AI manufacturing, all based in the United States. While the TSMC factory in Arizona is already producing the Blackwell chip, these new factories are the first of the “tens of gigawatt AI factories” expected to be built in the near future.

Nvidia’s founder and CEO, Jensen Huang, said, “The engines of the world’s AI infrastructure are being built in the United States for the first time.” He continued, “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.”

As Huang explained in his keynote address at the GTC 2025 conference last month, the next step in AI manufacturing is scale and efficiency. One solution to the massive logistical challenges that accompany this type of manufacturing in these “AI gigafactories” is the “digital twin” model: “We use the digital twin to communicate instructions to the large body of teams and suppliers, reducing execution errors … ensuring a future-proof AI.” Essentially, the digital twin is a computer copy of the factory and its millions of parts, allowing for clear communication across the supply chain and for readily available “what if” scaling experiments.

Huang also announced that the next generation of chips will play an increasingly important role in the rollout and scaling of these new U.S.-based gigafactories and AI supercomputers. This chip is called the Vera Rubin super chip, named after the astronomer who discovered dark matter. As he demonstrated in his address, this chip is dramatically more efficient and inexpensive to produce. It also represents a leap in sustainability, consuming far less energy than its predecessors — critical for powering the next wave of generative and reasoning AI and machine learning applications across industries.

In a statement, the White House claimed credit for this onshoring trend in manufacturing: “It’s the Trump effect in action.” The statement said, “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.” The administration emphasized that such investments are laying the groundwork for a new industrial revolution, centered on American technological dominance.