Nvidia said it’s planning to construct AI servers price as much as $500 billion within the US over the following 4 years with help from partners comparable to TSMC, the most recent American tech firm to back the Trump administration’s push for local manufacturing.
Monday’s announcement includes production of its Blackwell AI chips at TSMC’s factory in Phoenix, and supercomputer manufacturing plants in Texas by Foxconn and Wistron which are expected to ramp up in 12 to fifteen months.
The move aligns the AI chip giant, the vast majority of whose processors are made in Taiwan, with a clutch of tech firms which have pledged to bring manufacturing back to the US amid threats of steep tariffs from President Trump.
“It’s unlikely Nvidia would have moved any production to the US if it was not for pressure from the Trump administration,” said D.A. Davidson analyst Gil Luria.
“The half a trillion number is probably going hyperbole, in the identical way Apple made a half-a-trillion promise.”
Apple, which assembles most of its iPhones in China, in February promised half a trillion dollars in US investments in the following 4 years, including a factory in Texas for artificial intelligence servers.
Nvidia’s announcement comes just hours after the US exempted electronics comparable to smartphones and chips from its reciprocal tariffs on China, but said it will be announcing the tariff rate on imported chips over the following week.
The exemptions indicate an increasing awareness inside the Trump administration of the pain that the tariffs could inflict on inflation-weary consumers in addition to the booming AI industry that relies on chip-related tools from China and Taiwan.
“Adding American manufacturing helps us higher meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency,” Nvidia CEO Jensen Huang said on Monday.
Manufacturing AI chips and supercomputers within the US will create a whole bunch of 1000’s of jobs in the approaching a long time, Nvidia said.
“The explanation they did it’s due to election on November 5, and due to thing called tariffs,” Trump said on Nvidia’s announcement during a briefing within the White House.
Huang in March had said Nvidia sees little short-term impact from higher US tariffs, but would move production to the US in the long term, without giving a timeline.
The corporate said on Monday TSMC has began the production of its latest generation of chips at its Arizona factory.
