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Nvidia Sign on Building

AP Photo/Jeff Chiu, File

FILE – A sign for an Nvidia building is shown in Santa Clara, Calif., May 31, 2023.

Semiconductor manufacturer Nvidia announced on Monday that Houston will host one of its two planned supercomputer manufacturing plants in Texas.

The California-based technology giant is collaborating with Taiwanese companies to construct two manufacturing facilities in Texas: one with Foxconn in Houston and another with Wistron in Dallas. Nvidia forecasts that both locations will reach mass production within the next 12-15 months.

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

This announcement follows the recent temporary tariff exemptions on electronics, such as laptops and smartphones, introduced by the Trump administration. However, Nvidia did not suggest that tariffs influenced its initiatives in Texas.

The plants will focus on manufacturing chips and supercomputers, with Nvidia anticipating production up to half a trillion dollars in AI infrastructure within the U.S. The company also mentioned that the factories are expected to create hundreds of thousands of jobs and significantly contribute to economic security.

Although Nvidia has not disclosed specific details about the Houston facility’s location or the expected local employment, it did announce a new chip testing facility in Phoenix, Arizona.

Founded in 1993 and initially a graphic chip designer, Nvidia became one of the most valuable U.S. companies in 2024, thanks to its effective AI acceleration technology.

The company’s stock has surged nearly 1,500% over the past five years, climbing from less than $10 to around $150 per share by late 2024. Nevertheless, Nvidia’s shares have decreased by approximately 17% this year as markets continue to react to potential long-term tariffs.