Nvidia Plans to Manufacture Some AI Chips in the United States

Nvidia is going to manufacture some of its advanced AI chips in the US. The company has taken over a million square feet of space in Arizona and Texas to build and test these chips.

Nvidia says production of its latest Blackwell chips has already started at TSMC’s Phoenix, Arizona facility. The company is building supercomputer manufacturing plants in Texas with Foxconn in Houston and Wistron in Dallas. Amkor and SPIL will do the packaging and testing in Arizona.

Mass production will ramp up in Houston and Dallas in the next 12 to 15 months. Nvidia plans to produce half a trillion dollars of AI infrastructure in the US over the next four years.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Nvidia CEO Jensen Huang. He said American manufacturing will strengthen supply chains, increase resiliency and meet the exploding demand for AI.

This comes after Nvidia avoided US export controls on its H20 chip. The company reportedly agreed to invest in domestic AI chip components with the Trump administration.

Other tech giants are following suit with the administration’s “America-first” AI policy. OpenAI, with SoftBank and Oracle, is investing in the $500 billion Stargate Project. on 2025, Microsoft plans to invest $80 billion on AI data centers, with half of that amount going to the US.

But there are challenges. China will retaliate with tariffs and there’s a shortage of skilled labor in the US. And the Trump administration’s stance on the Chips Act may impact future semiconductor investments.

Nvidia expects its US initiatives to create hundreds of thousands of jobs and trillions of economic growth over the next few decades.