Houston, we have a proposal: Apple builds AI server chip factory in Texas

Apple’s data center infrastructure is expanding with a significant new manufacturing initiative in Texas. The tech giant is partnering with Foxconn to produce AI servers equipped with next-generation M5 chips, marking Apple’s first U.S.-based server manufacturing venture.

Project Overview: Apple and Foxconn are establishing a 250,000 square foot server manufacturing facility in Houston, Texas, scheduled to open in 2026.

• The facility will focus on producing AI servers powered by TSMC‘s advanced M5 chips
• Initial server production will begin at Foxconn’s existing Houston facilities in late 2025
• Foxconn recently acquired additional land in Houston to support this expansion

Technical Specifications: The servers will incorporate Apple’s most powerful processors from the M5 family, which represents the next generation of Apple Silicon chips.

• Mass production of M5 Pro and M5 Max chips is scheduled to begin in the second half of 2025
• The more powerful M5 Ultra chips will enter production in 2026
• These servers will form the backbone of Apple’s Private Cloud Compute infrastructure for AI operations

Manufacturing Timeline: The project follows a staged approach to production and facility expansion.

• Server assembly will initially commence at Foxconn’s current Houston location in 2025
• Operations will expand to the new facility when construction completes in 2026
• The phased approach allows Apple to begin AI server production while the new facility is being built

Strategic Implications: This manufacturing initiative signals Apple’s commitment to expanding its AI capabilities and domestic production presence.

• The move represents Apple’s first major server manufacturing operation in the United States
• The facility strengthens Apple’s AI infrastructure by bringing server production closer to home
• The investment demonstrates Apple’s strategy to vertically integrate its AI computing capabilities

Looking Ahead: The Houston facility positions Apple to better compete in the rapidly evolving AI landscape, though questions remain about how these servers will integrate with Apple’s existing cloud infrastructure and whether this domestic manufacturing model will extend to other product lines.