Nvidia is set to manufacture chips and supercomputers in the United States for the first time, just as the U.S. government revealed its probe into the semiconductor and pharmaceutical industries.
The company has commissioned over one million square feet of manufacturing space in Arizona and Texas, where it will build its Blackwell chips and artificial intelligence supercomputers. This will be part of Nvidia’s US$500 billion four-year plan to construct AI infrastructure in the U.S.
“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,” said Nvidia CEO Jensen Huang.
“Manufacturing Nvidia AI chips and supercomputers for American AI factories is expected to create hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades,” according to Nvidia.
Nvidia’s Blackwell chips will be built at a factory operated by TSMC in Phoenix, Arizona, while its supercomputers will be built at Foxconn and Wistron facilities in Texas. All locations are expected to ramp up in 12 to 15 months.
The White House called Nvidia’s move “the Trump Effect in action”, with U.S. President Donald Trump saying it was spurred by the administration’s recently introduced tariffs. While Trump has announced China-made chips will be exempt from this month’s tariffs, previous tariffs will remain in place, and a new tariff on chips is expected in the coming days.
TSMC and Nvidia had been discussing manufacturing Nvidia’s Blackwell chips at the Arizona TSMC plant from December 2024. Huang said last month that Nvidia would not be significantly impacted by these tariffs in the short-term, but had been seeking to move some of its production to the U.S. over the long-term.
Huang also met with Trump earlier this month to discuss incoming restrictions on the sale of Nvidia’s H20 chips in China, with Huang offering the administration increased investment in U.S. AI data centres in exchange for scrapping these regulations.
Nvidia’s (NASDAQ: NVDA) share price closed at US$110.71, down from its previous close at $110.93. its market capitalisation is $2.7 trillion.
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