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NVIDIA's move to US manufacturing responds to tariffs and Trump's policies. Following White House talks, this shift aims to produce $500B in AI infrastructure while strengthening supply chains in the U.S.
This week, NVIDIA announced a significant strategic move to manufacture its advanced AI chips and supercomputers within the United States for the first time. This decision comes in response to escalating geopolitical tensions and substantial tariff pressures, including a 32% tariff on Taiwanese semiconductors and a 145% tariff on Chinese imports—part of the Trump administration's aggressive trade policies aimed at reshoring high-tech manufacturing.
In an official announcement on X, NVIDIA outlined the scale and strategic partnerships behind this historic manufacturing shift:
Within the next 4 years, NVIDIA plans to produce up to half a trillion dollars of AI infrastructure in the U.S. — partnering with TSMC, Foxconn, Wistron, Amkor & SPIL.
— NVIDIA Newsroom (@nvidianewsroom) April 14, 2025
We're meeting the demand for AI chips and supercomputers, strengthening supply chains, and boosting resiliency. pic.twitter.com/mLtas2Y3OQ
Production of NVIDIA's Blackwell AI chips has commenced at Taiwan Semiconductor Manufacturing Company's (TSMC) facility in Phoenix, Arizona. TSMC began producing chips using the 4nm process at this Arizona plant in January 2025. This shift aligns with discussions between NVIDIA CEO Jensen Huang and President Trump during their White House meeting earlier this year, where they explored strategies to strengthen U.S. technology leadership amid intensifying global competition.
In addition, NVIDIA is establishing two supercomputer manufacturing plants in Texas, partnering with Foxconn in Houston and Wistron in Dallas. Mass production at these facilities is expected to ramp up within the next 12 to 15 months, potentially benefiting from Trump's promised reduction of bureaucratic barriers for American tech companies.
Jensen Huang, NVIDIA's CEO and founder, stated,
"The engines of the world's AI infrastructure are being built in the United States for the first time. 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 statement echoes sentiments expressed during his White House discussions about maintaining America's competitive edge in AI development.
To support this expansion, NVIDIA will use its own AI and robotics to help run the new facilities. Digital twins of the factories will be built using NVIDIA Omniverse, while Isaac GR00T robots will automate parts of the manufacturing process.
NVIDIA Isaac GR00T N1: An Open Foundation Model for Humanoid Robots.
This initiative is projected to generate hundreds of thousands of jobs and aims to produce up to $500 billion worth of AI infrastructure in the U.S. over the next four years. By collaborating with partners like TSMC, Foxconn, Wistron, Amkor, and SPIL, NVIDIA is reinforcing its supply chain resilience and aligning with U.S. economic and political objectives.
NVIDIA’s decision reflects a broader shift in how global technology companies respond to rising trade barriers and political uncertainty. While others have yet to make similar moves, the balance between cost, control, and resilience is now central to manufacturing strategy.
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