Nvidia will fully manufacture up to $500 billion in artificial intelligence (AI) chips and supercomputers over the next four years. announcement Monday.
The move comes amid President Trump’s ongoing trade war and a push for businesses to move the manufacturing and Congress processes to the United States. This is the first time an NVIDIA AI supercomputer has been made entirely in the US, the company said.
AI Chipmaker said it has commissioned more than 1 million square feet to build Nvidia Blackwell chips and Texas AI supercomputers in Arizona.
“Additional American manufacturing will meet the incredible demand for AI chips and supercomputers, strengthen our supply chain and increase our resilience,” said Jensen Huang, founder and CEO of Nvidia in a release Monday.
Nvidia has been supported by partners like TSMC (Taiwan Semiconductor Manufacturing Company Limited), and said Blackwell chips are already being produced at Phoenix’s TSMC chip plant.
The company is also expected to supercompute its manufacturing plant in Houston, Texas, and with the help of Foxconn, along with Wystron from Dallas, to accelerate production in the next 12-15 months. Amkor and Spil will partner with Nvidia for packaging and testing operations in Arizona.
The White House celebrated the announcement, saying it was the “Trump effect in action.”
Trump has made chip manufacturing based in us a priority as part of a merciless pursuit of American manufacturing. And we are paying off in trillions of dollars with new investments secured solely in the tech sector,” the White House wrote Monday.
When asked about it in the oval office on Monday, Trump cited the use of tariffs to move manufacturing to the US
“The reason they did that is because of what’s called the November 5 election and tariffs,” he told reporters, adding, “Nvidia is one of the greatest companies in the world, modern, ultra modern.”
“I’m honored with that and without Jensen and all the people we deal with, great people and tariffs, we wouldn’t do it,” the president added.
Trump has threatened a 32% tariff on Taiwanese products and goods, where many of Navidia’s products are normally made, but has suspended new tariffs for 90 days in all countries except China.
Taiwanese authorities held their first tariff talks with the United States last week.
The Trump administration said Friday that electronic devices such as phones, computers, routers and semiconductor chips will be exempt from “mutual” tariffs imposed on other countries, including China. But two days later, the administration made it clear that the immunity was just a temporary measure.
“This is not like a permanent exemption. [Trump’s] It simply makes it clear that these cannot be negotiated by the state. These are national security and what we need to be made in America,” Commerce Secretary Howard Lutnick told ABC News “this week.”
Trump said he would soon announce tariffs on semiconductors Sunday evening, but still suggested that certain products could have exceptions.
“The tariffs will be placed in the not-too-far future. You know, we did with steel, we did with aluminum, which is now fully on, we would do it with semiconductors, chips and a lot of other things.”
“And that’s going to happen in the very near future,” he added.
Earlier this year, Trump announced a $500 billion private investment in the US AI infrastructure, backed by ChatGpt Maker Openai, Oracle and SoftBank. Apple has invested $500 billion in the US over the next four years, while TSMC has invested $100 billion in its Arizona semiconductor manufacturing operations.
