• NVIDIA is building out AI factories worldwide.
• These efforts include chip manufacturing, digital twin simulations, and custom infrastructure.

NVIDIA and Foxconn have partnered to launch Taiwan’s first AI supercomputing hub. The facility will run on 10,000 of NVIDIA’s latest Blackwell GPUs. It’s part of a wider push to expand AI infrastructure to fulfil the rising demand across industries such as autonomous driving, healthcare, and industrial automation.

The hub is being built with support from Taiwan’s government and involvement from TSMC. This setup strengthens Taiwan’s position as a centre for chip production and AI development. The move comes as NVIDIA looks to expand its AI footprint in Asia, not just as a chip provider but as a builder of end-to-end systems.

Executives say the hub will also offer services to nearby countries, making it a regional resource. The location allows fast access to Asian tech markets while building stronger ties between NVIDIA and Taiwanese partners. The long-term goal is to use the site as a model for future hubs in Asia.

Domestic production ramps up with AI chip manufacturing in the US

NVIDIA will start making AI chips in the United States. It is setting up facilities in Arizona and Texas, that measure more than one million square feet. This marks a shift from its long-standing reliance on overseas production.

The move is a response to supply chain issues and growing pressure for US-based tech manufacturing. It’s also in line with the Biden administration’s push to bring semiconductor work back to American soil. Local production should help NVIDIA serve clients faster and with fewer delays.

More control over its supply chain could also make NVIDIA less vulnerable to geopolitical issues. With chip demand at an all-time high, having domestic production could help the company meet deadlines and fulfil large contracts without disruptions.

NVIDIA hasn’t confirmed exactly when chip output will begin, but analysts say the move will give the company a hedge against potential export restrictions or global shipping problems. It also gives enterprise customers added confidence that supply will remain stable.

Houston repositions itself as a high-tech manufacturing base

Houston, long known for oil and gas, is now drawing attention from AI hardware makers. NVIDIA and Apple are both building facilities in the area. This shift shows how old industrial cities are changing their focus to stay relevant.

These factories will support chip packaging, testing, and possibly full AI systems. For cities like Houston, it means new jobs, a more diverse economy, and a chance to stay active in global tech supply chains.

What’s happening in Houston is playing out in other places too. Other regions with strong logistics networks and industrial space are seeing renewed interest as tech companies expand beyond Silicon Valley. The local government is encouraging this move with tax breaks and land use incentives.

Community groups have raised questions about how these new roles will be filled. Will local colleges update training programs to meet the demand for tech workers? Or will companies need to bring in talent from other states? These questions are still open.

Digital twin technology reshapes AI factory design

NVIDIA’s Omniverse Blueprint helps design and test AI factories in virtual space before anything is built. This “digital twin” approach cuts down on waste, speeds up planning, and lowers risk.

The company is now working with Siemens and Delta Electronics to improve this tool. Engineers can use it to simulate equipment layout, worker flow, and even energy use. For a large AI factory, this kind of early modelling can save time and money.

It’s also part of a shift toward smarter construction. Using digital twins, companies can adjust factory plans without having to halt physical work. That makes it easier to scale operations or fix bottlenecks early in the process.

Companies using Omniverse say it helps avoid miscommunication between design and operations teams. Once a design is finalised in the virtual space, it can move to real-world construction with fewer changes.

NVLink Fusion enables custom AI infrastructure at scale

NVIDIA has also launched NVLink Fusion, a new way to connect its GPUs to outside chips. This lets tech companies build custom servers that match their specific needs.

The change means large firms no longer have to choose between off-the-shelf solutions or building from scratch. Instead, they can work with NVIDIA to design systems that fit their AI workloads. It’s a shift toward modular and flexible infrastructure.

NVLink Fusion is likely to benefit industries with high compute needs, such as robotics, healthcare imaging, and weather prediction. Companies can build systems that handle large models faster and more efficiently.

By offering more control over the design of AI systems, NVLink Fusion could also help firms reduce energy use or data centre space. The push for efficiency is becoming more urgent as AI models grow in size and complexity.

Strategic partnerships cement NVIDIA’s global AI influence

Saudi Arabia has signed a deal with NVIDIA to buy 18,000 Blackwell GPUs. The deal is part of a broader plan by the country’s Public Investment Fund to grow its AI footprint. The chips will be used by a local firm named Humain, backed by the fund.

This agreement shows how demand for AI infrastructure is now a global concern, not just limited to North America or East Asia. Countries with capital to spend want their own AI stack, and NVIDIA is well placed to sell to them.

Saudi Arabia is also investing in local training and research to support this rollout. The aim is not just to buy tech but to develop the skills and systems to use it locally.

Regional analysts say the country wants to use this infrastructure to attract global AI research and help incubate homegrown startups. NVIDIA’s involvement lends credibility to the project, making it more appealing to foreign investors.

Europe’s “AI gigafactories” and the InvestAI initiative

In Europe, NVIDIA is part of a public-private effort to build AI capacity. The InvestAI initiative will spend €200 billion on infrastructure. Plans include up to five “AI gigafactories,” each with at least 100,000 GPUs.

The idea is to make Europe less reliant on American or Chinese tech. While details are still early, the scale of the project suggests Europe sees AI as central to future economic strength and digital sovereignty.

These factories would support sectors like climate science, finance, and medical research. If completed as planned, they would give the EU one of the largest GPU deployments in the world.

The challenge will be execution. Power supply, cooling systems, talent recruitment, and data regulation all need attention. NVIDIA’s role may shift from supplier to co-designer as Europe firms up plans.