Nvidia will manufacture up to $500 billion of artificial intelligence (AI) chips and supercomputers entirely in the U.S. over the next four years, the company announced Monday.
The move comes amid President Trump’s ongoing trade war and push to get companies to move their manufacturing and assembly process to the U.S. It marks the first time that Nvidia AI supercomputers will be made entirely in America, the company said.
The AI chipmaker said it commissioned more than a million square feet to build Nvidia Blackwell chips in Arizona and AI supercomputers in Texas.
“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 founder and CEO Jensen Huang said in a release Monday.
Nvidia said it is being assisted by partners like TSMC (Taiwan Semiconductor Manufacturing Company Limited), with the company’s Blackwell chips already being produced at TSMC’s chip plants in Phoenix.
The company is also in the process of building supercomputing manufacturing plants in Houston, Texas with the help of Foxconn and with Wistron in Dallas and production is expected to accelerate over the next 12 to 15 months. Amkor and SPIL will also partner with Nvidia for packaging and testing operations in Arizona.
The White House celebrated the announcement, stating it is “the Trump Effect in action.”
Trump “has made U.S.-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing and it’s paying off with trillions of dollars in new investments secured in the tech sector alone,” the White House wrote in a statement Monday.
When asked about it in the Oval Office on Monday, Trump cited his use of tariffs to move manufacturing to the U.S.
“The reason they did it is because of the election on November 5 and because of a thing called tariffs,” he told reporters, adding later, “Nvidia is one of the greatest companies of the world, modern, super modern.”
“I’m honored by it and want to thank Jensen and all of the people that we deal with, brilliant people, and without tariffs, we wouldn’t be doing it,” the president added.
Trump has threatened a 32 percent tariff on products and goods from Taiwan, where many of Nvidia’s products are typically made, but paused his new tariffs for 90 days for all countries except China.
Taiwan officials held their first tariff talks with the U.S. last week.
The Trump administration said Friday that electronics such as phones, computers, routers and semiconductor chips would be exempt from the “reciprocal” tariffs imposed on other nations, including China. But two days later, the administration clarified the exemption is only a temporary measure.
“This is not like a permanent sort of exemption. [Trump’s] just clarifying that these are not available to be negotiated away by countries. These are things that are national security, that we need to be made in America,” Commerce Secretary Howard Lutnick told ABC News’s “This Week.”
Trump followed this up Sunday evening, stating he would announce tariffs on semiconductors soon, but still suggested there could be exceptions for certain products.
“The tariffs will be in place in the not distant future. Because, as you know, like we did with steel, like we did with automobiles, like we did with aluminum, which are now fully on, we’ll be doing that with semiconductors, with chips and numerous other things,” Trump told reporters aboard Air Force One.
“And that’ll take place in the very near future,” he added.
Trump earlier this year announced a private $500 billion investment in AI infrastructure in the United States, backed by ChatGPT maker OpenAI, Oracle and Softbank. Apple is also investing $500 billion in the U.S. over the next four years, while TSMC is investing a $100 billion investment in its Arizona semiconductor manufacturing operation.
