Nvidia to manufacture AI chips in the USA for the first time

Nvidia has announced that it plans to produce up to half a trillion US dollarsโ€™ worth of AI infrastructure in the United States over the next four years through partnerships with Taiwan Semiconductor Manufacturing (TSMC), Foxconn, Wistron, Amkor and SPIL.

The Californian-based company said production of its latest generation of AI Blackwell chips have started production at TSMCโ€™s chip plants in Phoenix, Arizona. Nvidia is also building supercomputer manufacturing plants in Texas, with Foxconn in Houston and with Wistron in Dallas.

Nvidia added it is partnering with Amkor and SPIL for packaging and testing operations in Arizona.

According to the company, it has commissioned more than a million square feet of manufacturing space to build and test Nvidia Blackwell chips in Arizona and AI supercomputers in Texas.

These moves mark the first time Nvidia has produced its AI supercomputers entirely in the US.

Why Nvidia is moving manufacturing to America

โ€œAdding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency,โ€ Nvidia founder and CEO Jensen Huang said in a statement.

Mass production at the Foxconn and Wistron plants is expected to ramp up in the next 12-15 months, Nvidia said.

Nvidia touted manufacturing its chips and supercomputers in the US is expected to โ€œcreate hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decadesโ€.

The news comes after President Donald Trump imposed high โ€œreciprocalโ€ tariffs on a long list of countries, including 32% tariff on products from Taiwan, where Nvidia largely manufacturers its chips. 

However, shortly after making the tariffs announcement on so-called Liberation Day, Trump said tariff exemptions would apply to chips, as well as smartphones, computers and other consumer electronics.ย 

Days after announcing the exemptions, Trump then changed his tune again, announcing tariffs would apply on imported semiconductors.

During an appearance at the White House, Trump claimed his tariffs are responsible for Nvidiaโ€™s decisions to begin manufacturing in the US.

The UKย Telegraphย reported Nvidiaโ€™s move comes weeks after Huang dined at Trumpโ€™s Mar-a-Lago resort.ย 

Aimee Chanthadavong
Aimee Chanthadavong

Aimee Chanthadavong has been a journalist, editor and content producer for more than a decade. During that time she's covered enterprise technology for premium websites such as ZDNet and InnovationAus as well as food and travel for Broadsheet and SBS.