Nvidia, a leading chipmaker, has announced that it will manufacture some of its artificial intelligence (AI) chips in the United States for the first time. This move marks a significant shift in the company’s production strategy, which previously relied heavily on Taiwan for chip production.
The company plans to invest up to $500 billion in AI infrastructure in the US over the next four years. As part of this investment, Nvidia will partner with several contract manufacturers, including Taiwan Semiconductor Manufacturing Co. (TSMC), Foxconn, Wistron, Amkor, and Silicon Precision Industries. Together, they will build more than a million square feet of production space, creating hundreds of thousands of jobs.
TSMC has already begun producing Nvidia’s Blackwell chip at its Arizona factory. The partnership with Amkor and Silicon Precision Industries (SPIL) will focus on packaging and testing operations in Arizona. Amkor had previously announced plans to build a $2 billion packaging facility in the state in December 2023.
Nvidia is also collaborating with Foxconn in Houston and Wistron in Dallas to establish two supercomputer manufacturing plants. Production at these sites is expected to ramp up over the next 12 to 15 months. This announcement follows recent statements by Nvidia’s CEO, Jensen Huang, who told the Financial Times that the company planned to invest hundreds of billions of dollars in US manufacturing over the next four years.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Huang said in a statement. “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.”
This development comes as the Trump administration is pushing for companies to increase US manufacturing through its tariff regime. Recently, President Donald Trump announced tariff exemptions for certain electronics products, including smartphones, flat panel display modules, and various electronic integrated circuits. These products fall under 20 harmonized tariff codes classified as “semiconductors.”
The announcement is part of a larger trend of electronics manufacturers investing in US production. TSMC recently announced plans to invest $100 billion in US manufacturing, including multiple chip factories in Arizona. Apple also unveiled plans to invest $500 billion in US manufacturing, highlighting a significant shift in the industry’s approach to production in the United States.
