A new factory and new jobs could come north of Texas. Nvidia announced on Monday morning that she wanted to build two factories in Texas – one in Houston and one in Dallas.
Some have hypothesized that this could be a decision to bypass the prices in Taiwan, where the company manufactures most of its computer chips.
There are several reasons why some experts think that the superprise of the computer chip may want to bring factories to the solitary star state.
“Taiwan does not really have any energy. Electricity is really very expensive there. It is mainly gas or coal, and one of the big things about coming to Texas is really cheap, so I think that has something to do with the selection of Dallas or Houston,” said Don Shelly, business teacher at SMU Cox School of Business.
Prices were also a big question.
While Nvidia is known to build computer flea, which have for the moment have been exempt, the two factories of Texas would be “AI supercomputers”, which could be subject to something different.
But Shelly thinks that the prices overall will not be a problem.
“It’s just not good for trade; I think everyone realizes it. But there is a big push to say that if you put prices of 25% or 30% on our products, it’s not fair. Oh, we want you to reduce them and try to level the rules of the game,” he said.
In the blog post, Nvidia said that she expects production to start with the two factories he had not yet built.
Even if they are constructed relatively quickly, Shelly thinks there could be other problems.
“I suspect that it will be much more complicated to set up the supply chain here than they have installed in Asia, just because they have been there for a long time,” said Shelly. “The good news is that this will probably mean more jobs for suppliers” “
But he hopes that new factories could bring a technological renaissance in northern Texas.
“They call Phoenix now Silicon Desert. So I don’t know, but maybe we can get a similar designation,” said Shelly.