Power Electronics Built New Texas Inverter Factory
The 800,000-square-foot facility seeks to address supply constraints for manufacturers and energy operators.
Updated on Sept. 28, 2026 in Manufacturing
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Power Electronics has broken ground on a new Texas inverter factory spanning over 800,000 square feet. This facility will provide up to 40 GW of annual capacity, targeting growth in global energy and AI sectors.
Why it matters
The development comes as the U.S. looks to expand domestic inverter production following a July 2026 ban on foreign-made inverters. Expanding local manufacturing capacity offers operators a new path to secure hardware amidst tightening supply chain regulations.
The new site offers 40 GW of annual capacity compared to a 2020 baseline where only 7% of inverters used in the U.S. were produced domestically. The factory occupies a footprint of 800,000 square feet.
The players
Power Electronics
An international manufacturer of power conversion hardware for the renewable energy and industrial sectors.
EnerVenue
A developer of battery energy storage technology that recently relocated its factory plans to China.
Trump administration
The current federal executive branch responsible for trade and manufacturing policy, including the 2026 foreign inverter ban.
The details
Power Electronics is scaling domestic production capacity to meet the infrastructure requirements of the energy and AI sectors. The investment follows the July 2026 federal ban on foreign-made inverters, a policy shift that has forced a restructuring of supply chains. In contrast, other companies like EnerVenue have opted to relocate manufacturing to Changzhou, China, citing the specific local labor pool and supply chain advantages found there.
Timeline
U.S. domestic inverter production stood at 7% in 2020.
The Trump administration implemented a ban on foreign-made inverters in July 2026.
Power Electronics broke ground on the Texas factory in September 2026.
Market Landscape
The move follows the July 2026 ban on foreign-made inverters, which has fundamentally reshaped sourcing strategies for U.S. operators. This trend contrasts with other firms that have prioritized international production hubs to mitigate labor and supply chain costs.
Operators reliant on inverter hardware should re-verify their supplier compliance against the July 2026 ban on foreign imports. This domestic expansion may provide a hedge against future volatility in international supply chains.
The takeaway
The expansion of domestic inverter capacity reflects a broader move to insulate infrastructure projects from import restrictions. Operators should monitor the progress of new domestic facilities to benchmark future supply availability and potential cost changes.
Further reading
For more on the changing landscape of local industrial production, see the Manufacturing section.
Source note: This article includes information reported by Energy Central.
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