Nvidia to Manufacture AI Chips in the US | Tech News

Nvidia Expands AI Chip Production in the U.S.

Nvidia announced on Monday a significant expansion of its manufacturing capabilities within the United States. The company has secured over one million square feet of facilities in Arizona and Texas dedicated to the production and testing of AI chips.

Blackwell Chip Production and New Facilities

Production of Nvidia’s Blackwell chips has commenced at TSMC’s facilities located in Phoenix, Arizona. Furthermore, Nvidia is actively establishing advanced “supercomputer” manufacturing plants in Texas.

• A partnership with Foxconn is underway in Houston, Texas.
• Collaboration with Wistron is being developed in Dallas, Texas.

In Arizona, Nvidia is working with Amkor and SPIL to handle packaging and testing processes.

Production Timeline and Economic Impact

Full-scale production at the Texas plants in Houston and Dallas is anticipated to increase over the next 12 to 15 months. Within the next four years, Nvidia projects the potential to generate up to $500 billion in AI infrastructure value within the U.S.

CEO Statement and Supply Chain Resilience

“For the first time, the foundational components of global AI infrastructure are being manufactured in the United States,” stated Nvidia CEO Jensen Huang. “This expansion allows us to more effectively address the substantial and increasing demand for AI chips and supercomputers, while also strengthening our supply chain and enhancing our overall resilience.”

Avoiding Export Controls and Domestic Manufacturing Deal

This announcement follows reports that Nvidia successfully avoided potential export restrictions on its H20 chip. This was achieved through an agreement to invest in domestic manufacturing with the Trump administration.

The H20 chip, representing Nvidia’s most advanced technology still available for export to China, was reportedly protected due to a commitment from Huang to invest capital in U.S.-based AI data center components.

Industry Trend: Aligning with "America-First" Policies

Numerous other AI companies are aligning with the Trump administration’s “America-first” policies to foster favorable relationships. OpenAI, in collaboration with SoftBank and Oracle, launched the $500 billion Stargate Project for U.S. data centers in January.

Microsoft has also committed $80 billion to the construction of AI data centers in its 2025 fiscal year, with half of that investment designated for the U.S.

Trump Administration’s Influence on Manufacturing

Recent months have seen the Trump administration exert considerable influence to achieve desired outcomes. Reports indicate that TSMC was informed it could face taxes of up to 100% if it did not establish new chip factories within the U.S.

Potential Economic Benefits and Challenges

Nvidia estimates that its U.S. chip manufacturing initiatives could generate “hundreds of thousands” of jobs and stimulate “trillions of dollars” in economic activity over the coming decades.

However, efforts to bolster the domestic chipmaking industry are encountering significant and increasing obstacles.

• Retaliatory tariffs and trade restrictions from China pose a threat to the supply of essential raw materials.
• A critical shortage of skilled workers exists for chip assembly.
• Actions by the Trump administration to weaken the Chips Act could discourage future investments from major semiconductor companies.