Nvidia said it plans to build AI servers worth up to $500 billion in the US over the next four years, with the support of partners such as TSMC, the latest American high-tech company that supports the Trump administration’s push for local manufacturing.
Monday’s announcement includes production of Blackwell AI chips at TSMC’s plant in Phoenix, as well as a Texas supercomputer manufacturing plant by Foxconn and Wistron, which is expected to increase in 12-15 months.
The move lined up the AI chip giants, with most of their processors being made in Taiwan, and the clutches of high-tech companies that have pledged to bring manufacturing back to the US amid a sudden tariff threat from President Trump.
“Unless it’s due to pressure from the Trump administration, Nvidia will likely move production to the US,” said Da Davidson analyst Gil Luria.
“The half-trillion could probably be an exaggeration, just like Apple made the half-trillion promise.”
Apple, which assembles most iPhones in China, promised $50 trillion in US investment over the next four years, including a factory for artificial intelligence servers in Texas.
The Nvidia announcement comes just hours after the US exempts smartphones and chips from mutual tariffs in China, but said it will announce tariff rates for imported chips next week.
The exemption shows an increase in perception of the pain tariffs could inflict on inflation-bearing consumers and booming AI industries relying on chip-related tools in China and Taiwan.
“Additional American manufacturing will meet the incredible demand for AI chips and supercomputers, strengthen the supply chain and increase resilience,” said Jensen Huang, CEO of Nvidia on Monday.
The manufacture of American AI chips and supercomputers will create hundreds of thousands of jobs in the coming decades, Nvidia said.
“The reason they did that is because of the November 5th election, something called tariffs,” Trump said in an Nvidia announcement during a briefing at the White House.
Huang said in March that Nvidia saw little short-term impact from higher US tariffs, but would move production to the US over the long term without giving a timeline.
The company said Monday that TSMC has begun production of the latest generation of chips at its Arizona plant.
