Nvidia Moves AI Chips Manufacturing to U.S. For 1st Time/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Nvidia announced it will manufacture AI chips and supercomputers in the U.S. for the first time. Production will take place in Arizona and Texas, as part of a massive investment in American AI infrastructure. The move aligns with Trump’s push for reshoring semiconductor manufacturing.
Nvidia’s U.S. Move: Quick Looks
- Historic Shift: Nvidia to manufacture AI chips domestically for first time
- Manufacturing Sites: Arizona and Texas selected for chip and supercomputer builds
- Blackwell Chips: Nvidia’s newest AI chips to launch U.S. production
- AI Factories: Facilities built to serve next-gen AI data centers
- Job Creation: Company says move will generate hundreds of thousands of jobs
- Trade Policy Impact: Announcement follows Trump’s tariff strategy on electronics
- White House Reaction: Admin touts “Trump Effect” on domestic manufacturing
- Mass Production Timeline: Scaling up expected over next 12–15 months
Nvidia Moves AI Chips Manufacturing to U.S. For 1st Time
Deep Look
LOS ANGELES — In a landmark announcement Monday, Nvidia revealed it will manufacture its AI chips and supercomputers inside the United States for the first time, signaling a major shift in tech production and aligning closely with the Trump administration’s reshoring agenda.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Nvidia CEO Jensen Huang.
Where Production Will Happen
The California-based tech leader will commission over one million square feet of manufacturing space for its AI operations. Production of its new Blackwell AI chips will begin at Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Phoenix, Arizona, while supercomputers will be assembled in Texas, through partnerships with Foxconn in Houston and Wistron in Dallas.
Nvidia said this U.S.-based effort could yield up to $500 billion in AI infrastructure over four years, creating what the company called “AI factories” — specialized data centers designed to process large-scale artificial intelligence tasks.
“Manufacturing in the U.S. will strengthen our supply chain, meet exploding demand, and improve national resiliency,” Huang added.
Political Context: Trump’s Tariff Pressure
The announcement comes just days after the Trump administration softened some electronics tariffs, though officials stressed the reprieve is temporary.
“They’re exempt from the reciprocal tariffs but included in the semiconductor tariffs, which are coming in probably a month or two,” said Commerce Secretary Howard Lutnick on ABC’s This Week.
Trump’s broader trade policy has put pressure on tech companies to build capacity at home, particularly in the semiconductor space, amid fears of supply chain vulnerabilities and geopolitical risks in Asia.
Blackwell Chips and AI Infrastructure
Nvidia’s Blackwell chips are central to the company’s AI ambitions, powering next-generation supercomputers for generative AI, robotics, and machine learning.
These chips will serve “AI factories,” a term Nvidia uses to describe specialized data centers equipped solely for AI training and inference.
The company said its U.S. production initiative will create hundreds of thousands of jobs and provide economic security worth trillions of dollars over the next few decades.
Packaging and Testing Expansion
Nvidia also confirmed partnerships with SPIL and Amkor, two Taiwan-based packaging and testing firms, to expand operations in Arizona. These facilities will handle critical late-stage processes before chips are deployed in data centers.
Mass production is slated to ramp up within 12–15 months, according to Nvidia’s official statement.
White House Praises “Trump Effect”
“This is the Trump Effect in action,” said a White House statement. “Trump has made U.S.-based chip manufacturing a priority in his American manufacturing renaissance.”
Earlier this year, Trump announced the $500 billion Stargate AI infrastructure initiative, a public-private joint venture involving OpenAI, Oracle, and SoftBank. That effort is also focused on building out AI data centers and energy infrastructure in Texas.
The initial Stargate investment is expected to total $100 billion, with long-term goals reaching $500 billion — aligning neatly with Nvidia’s production timeline and infrastructure plans.
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