Nvidia Unveils $2 Billion Coherent Texas AI Factory Plan, Targeting 1,000 Jobs
Updated
Updated · The Associated Press · Jun 16
Nvidia Unveils $2 Billion Coherent Texas AI Factory Plan, Targeting 1,000 Jobs
3 articles · Updated · The Associated Press · Jun 16
Summary
$2 billion in Nvidia-Coherent investment will expand a Sherman, Texas plant to make indium phosphide, a key laser material that links AI chips into faster, more efficient systems.
Up to 50% lower power use is the pitch: the optical interconnects let Nvidia chips share data as one system, cutting computing costs and supporting Huang’s push from selling chips to selling full AI factories.
1,000 jobs are projected from the buildout, including about 550 advanced manufacturing, engineering and technical roles, with the project also backed by $33 million from the Biden-era CHIPS Act and $17 million from Trump’s administration.
Nvidia is using the Texas expansion to test Huang’s claim that AI can add factory work in the U.S. even as the technology raises fears over job losses, electricity demand and security risks.
Trump’s administration still sees AI as a growth engine for manufacturing and markets, but has begun tightening oversight through export controls and voluntary government vetting of new models.
Will AI's new factory jobs outweigh the automation threat to the wider American workforce?
Can energy-saving chips prevent the global AI buildout from triggering an unprecedented energy crisis?
How will government prevent algorithmic bias from being written into federal law as agencies adopt AI?
Nvidia and Coherent’s $1.5 Billion Texas AI Factory: Transforming U.S. Supply Chains, Jobs, and the Future of Artificial Intelligence
Overview
Nvidia and Coherent are building a new AI factory in Texas, marking a major shift in how advanced AI systems are made. Instead of just making chips, Nvidia is now focusing on delivering complete AI systems, which requires rethinking production and assembly. By clustering more manufacturing in the U.S.—with chipmaking in Arizona and assembly in Texas—they aim to optimize efficiency and strengthen the domestic supply chain for AI technologies. This strategic move supports growing demand for AI, reduces risks from global disruptions, and helps secure America’s leadership in the fast-evolving AI industry.