Till now, Nvidia has designed its chips but relied on factories in Asia to produce them|Will Buckner|CC BY 2.0
Nvidia announced Monday that it plans to manufacture some AI supercomputers entirely in the US for the first time.
The company is looking to invest up to $500 billion over the next four years through domestic partnerships, citing booming global demand for AI chips and the need for supply chain resilience.
Until now, Nvidia has designed its chips but relied on factories in Asia to produce them. The move by the world’s leading semiconductor industry comes amid looming tariff fears over chips imported into the country.
Expanding production footprint
Production of Nvidia’s cutting-edge Blackwell AI chips has started at Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Phoenix.
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In Arizona, Nvidia is also working with Amkor and Siliconware Precision Industries for chip packaging and testing.
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The company is building supercomputer plants in Texas in partnership with Foxconn in Houston and Wistron in Dallas.
These facilities are expected to reach mass production within 12 to 15 months.
Nvidia has already commissioned more than 1 million square feet of manufacturing space.
To streamline operations, NVIDIA will use its own advanced robotics and digital twin technology, including Omniverse and Isaac GR00T, to automate and optimize manufacturing across its US facilities.
The White House hailed Nvidia’s announcement as a “Trump effect,” but Nvidia declined to link the decision directly to the tariff policy.
What are experts saying?
Manufacturing chips in the USA is not an easy feat. Compared to 1970, the percentage of American workers in manufacturing jobs declined from more than 25% to 8% today.