Fort Worth, Texas, has approved an offer of more than $30 million in tax abatement funds for a subsidiary of Taiwan-based Wistron Corp. to develop two electronics manufacturing facilities in the city in what is expected to be a $687 million investment.
In last week's regular city council meeting, Fort Worth officials approved a 10-year tax abatement agreement on two sites in the city limits at 15200 Heritage Parkway and 14601 Mobility Way. In the agreement, city officials expect the subsidiary of Wistron with a U.S. headquarters in San Jose, California, to invest at least $112 million in real property improvements to the two sites before June 30, 2026.
Wistron is a manufacturing partner of Nvidia's artificial intelligence supercomputers and is expected to operate the two Fort Worth electronics plants that will make Nvidia chips. Nvidia is one of the world's richest companies based on its market cap of about $3.8 trillion as of July 2. Nvidia and Microsoft have been swapping for the top spot throughout this year.
The Wistron subsidiary is also expected to have a minimum of $575 million of business personal property at the two facilities by Jan. 1, 2027. The two plants also have to employ a minimum of 888 full-time workers with an average salary of at least $63,000 by Dec. 31, 2026.
In return for these investments, the city of Fort Worth is proposing to reduce the new incremental property taxes tied to the two sites over a 10-year period from nearly $41.4 million to more than $10.6 million, in a savings of more than $30.7 million in property taxes, according to city documents.
The company, through subsidiary Wistron InfoComm, is expected to develop the two electronics manufacturing facilities as part of Nvidia's bigger plans to spend as much as $500 billion over the next four years building AI supercomputers throughout the United States.
Wistron or its subsidiary has yet to make an announcement on the projects. An interview request from CoStar News sent to the company seeking additional information on its plans wasn't immediately returned.
In April, Nvidia said it expected mass production to begin at the Fort Worth plants, as well as a plant expected to be built by Foxconn in Houston, in the next 12 to 15 months.
The company's CEO Jensen Huang said adding American manufacturing helps Nvidia better meet the growing demand for AI chips and supercomputers by strengthening its supply chain.
Most of Nvidia's chips are manufactured in Taiwan. This planned U.S. expansion by Nvidia was made amid threats of steep tariffs from President Donald Trump.