Nvidia has just announced a plan to produce AI servers in the United States over the next four years. The entire program reportedly costs a whopping $500 billion and will be accomplished through partnerships with TSMC and other manufacturers.
As part of this initiative, TSMC's factory in Phoenix, Arizona, will be the hub for producing Blackwell AI chips for Nvidia, while Foxconn plants in Houston and Wistron plants in Dallas will be responsible for building AI supercomputers.
The company anticipates that this program will not only create hundreds of thousands of jobs for Americans but also "drive trillions of dollars in economic security over the coming decades."
"The engines of the world's AI infrastructure are being built in the United States for the first time," Nvidia CEO Jensen Huang said. "Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency."
Nvidia's plan to bring manufacturing to the US comes after the Donald Trump administration announced hefty tariffs on China and some other nations. While the administration later exempted phones, chips, and computers from paying tariffs, Commerce Secretary Howard Lutnick recently said tariff exemptions on tech are temporary (via CNN).
Additionally, Donald Trump said Sunday that he'll announce new tariffs on semiconductor chips over the next week. He also told reporters aboard Air Force One that his administration "wanted to uncomplicate it from a lot of other companies because we want to make our chips and semiconductors and other things in our country."
Nvidia currently produces the majority of its chips in Taiwan. Given the recent turn of events and the possibility of imposing tariffs on semiconductors, bringing the manufacturing to the US could safeguard Nvidia against tariffs. The move also follows Apple's recent half-a-trillion investment promise in the United States.
13 Comments - Add comment