Nvidia has announced plans to manufacture AI supercomputers entirely in the United States amid growing concerns over tariffs. The GPU giant will work with its manufacturing partners to commission over a million square feet of manufacturing space to build and test Blackwell GPUs in Arizona and AI supercomputers in Texas.
Production Plans
Production of Blackwell chips has already begun at TSMC’s fabs in Phoenix, Arizona, which were initially funded under the Biden-era CHIPS Act. Foxconn is set to build supercomputer manufacturing plants in Houston, while Wistron will establish operations in Dallas. Nvidia expects mass production at both plants to ramp up within the next 12-15 months. Amkor and SPIL will handle packaging and testing operations in Arizona.
Strategic Investment
Nvidia plans to produce up to half a trillion dollars’ worth of AI infrastructure in the United States over the next four years through its partnerships. The company will leverage its AI, robotics, and digital twin technologies to design and operate the factories. This includes using Omniverse to create digital twins of the facilities and Isaac GR00T to build robots for manufacturing automation.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, Nvidia’s founder and CEO. “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.”
Background and Challenges
Nvidia has long planned to have a portion of its GPUs manufactured in the US using TSMC’s fabs, first announced in 2020. The Arizona site is believed to have cost around $65 billion. TSMC has since announced plans to invest $100 billion in the US following criticism from President Trump regarding Taiwan ‘stealing’ America’s chip business and threats of tariffs.
While electronics have been exempted from the 125 percent tariffs against China, Trump has indicated plans to announce semiconductor tariffs soon. It remains unclear whether TSMC will be exempt due to its US investment. Even with US-based manufacturing, materials and components may still be sourced from overseas.
