Nvidia Commits to U.S. AI Chip Production Amid Political and Economic Shifts
In a major move supporting domestic technology production, Nvidia has revealed plans to invest up to $500 billion over the next four years to build artificial intelligence servers in the United States.
This effort will involve collaborations with industry giants like TSMC and aligns with growing political pressure to shift tech manufacturing back to American soil.
As part of its initiative, Nvidia will produce its new Blackwell AI chips at TSMC’s facility in Phoenix, Arizona.
Additionally, Foxconn and Wistron will begin constructing supercomputer manufacturing plants in Texas, with operations projected to begin within 12 to 15 months.
The announcement closely follows a series of similar commitments from other U.S. tech leaders responding to increased emphasis on local production driven by tariff threats from President Donald Trump.
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Industry analyst Gil Luria from D.A. Davidson noted, “It is unlikely Nvidia would have moved any production to the U.S. if it was not for pressure from the Trump administration.”
He added that the proposed half-trillion-dollar figure could be exaggerated, comparing it to Apple’s recent pledge of a similar scale, which many viewed with skepticism.
Apple, which still assembles the majority of its iPhones in China, had earlier this year outlined plans to invest $500 billion in the U.S., including building AI server facilities in Texas.
Nvidia’s decision came just hours after the U.S. government declared certain electronics—like chips and smartphones—would be temporarily excluded from its reciprocal tariffs on China.
However, officials confirmed that new tariff rates on imported chips would be disclosed within a week.
These tariff exemptions suggest a balancing act by the Trump administration as it tries to protect consumers from rising costs while also nurturing the fast-growing AI industry, which is deeply dependent on foreign chip technologies.
“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.
According to Nvidia, domestic manufacturing could result in the creation of hundreds of thousands of jobs over the next few decades. Commenting on the announcement, President Trump said, “The reason they did it is because of the election on November 5, and because of the thing called tariffs.”
While Huang previously stated that immediate effects of tariffs would be limited, he acknowledged in March that the company would eventually shift more production to the U.S.—a strategy now underway as TSMC begins fabricating Nvidia’s next-generation chips in Arizona.
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