Nvidia declared on Monday that it will be manufacturing its AI supercomputers in the US for the first time.
In order to develop and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas, the tech giant announced that it has put more than one million square feet of manufacturing space into service. The company estimates that this investment will result in the production of up to half a trillion dollars’ worth of AI infrastructure over the course of the next four years.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia founder Jensen 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.”
Nvidia’s statement coincides with the Trump administration’s declaration that tariff exemptions for devices such as laptops and smartphones are only a short-term fix while authorities create a new tariff strategy tailored to the semiconductor sector.
President Donald Trump and other White House officials spent Sunday downplaying the importance of exclusions that mitigate but do not completely remove the impact of U.S. tariffs on imports of popular consumer electronics and their essential parts.
“They’re exempt from the reciprocal tariffs but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” U.S. Commerce Secretary Howard Lutnick told ABC’s “This Week” on Sunday.
In a statement on its website, Nvidia said that it has begun producing Blackwell chips at Taiwan Semiconductor Manufacturing Co. facilities in Phoenix. With Foxconn in Houston and Wistron in Dallas, the chip firm, which is headquartered in Santa Clara, California, is also constructing supercomputer production facilities in Texas.
According to the company, manufacturing in the United States will generate “hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades.” Nvidia’s AI super computers will power AI factories, “a new type of data center created for the sole purpose of processing artificial intelligence.”
In the upcoming 12 to 15 months, Nvidia anticipates ramping up mass production at both locations. Additionally, the business intends to collaborate with Amkor and Taiwan-based SPIL on “packaging and testing operations” in Arizona.
The White House referred to Nvidia’s decision as “the Trump Effect in action” in a statement released on Monday.
Trump “has made U.S.-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing renaissance, and it’s paying off — with trillions of dollars in new investments secured in the tech sector alone,” the White House said.
Earlier this year, Trump announced a new alliance with OpenAI, Oracle, and SoftBank that will spend up to $500 billion in artificial intelligence-related infrastructure. According to the White House, the new organization, Stargate, was entrusted with constructing data centers and the electrical generation required for the continued advancement of the rapidly developing AI in Texas.
An initial investment of $100 billion is anticipated, with the potential to increase by five times that amount.
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