Nvidia reveals plans to manufacture some AI chips in the U.S.

Nvidia to Produce Advanced AI Supercomputer Chips in the United States

In a significant move for domestic manufacturing, Nvidia has announced plans to produce its cutting-edge AI supercomputer chips within the United States for the first time. The semiconductor giant aims to bolster its production capacity amid surging demand for AI technology, investing heavily in new facilities and partnerships to achieve this strategic objective.

Manufacturing Expansion Across Arizona and Texas

The semiconductor innovator revealed in a blog post on Monday that it has secured over one million square feet of manufacturing space in Phoenix, Arizona, dedicated to the construction and testing of its advanced Blackwell chips. Furthermore, Nvidia is establishing supercomputer manufacturing plants in Houston and Dallas, Texas. The company anticipates that reaching mass production scale at both the Phoenix and Texas facilities will require at least a year.

Ongoing Production with TSMC

Concurrently, Nvidia clarified that production of its Blackwell chips has already commenced at existing Phoenix chip plants operated by Taiwan Semiconductor Manufacturing Company (TSMC), a leading global semiconductor foundry.

Strategic Investment in US AI Infrastructure

This announcement follows Nvidia‘s indication last month of its intent to invest hundreds of billions of dollars in AI infrastructure within the US over the next four years. This initiative aligns with a broader push for stateside development among major semiconductor companies, including Foxconn and TSMC.

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CEO Huang Emphasizes Benefits of US Manufacturing

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” stated Nvidia CEO Jensen Huang. He elaborated, “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.“

Navigating the US Semiconductor Policy Landscape

This expansion occurs amidst complex political signals from Washington concerning the US semiconductor supply chain. While former President Donald Trump has advocated for repealing the bipartisan CHIPS Act, enacted under President Joe Biden in 2022 to allocate $280 billion in funding for the domestic industry, Congressional Republicans have shown limited enthusiasm for such a repeal. In a parallel development, Trump recently suggested the imposition of new tariffs on imported chips.

Geopolitical Context and Industry Influence

Reports indicate that CEO Huang recently attended a high-profile dinner at Mar-a-Lago, former President Trump’s Florida resort. Following this event, Nvidia reportedly reaffirmed its commitment to US investment to the Trump administration. Subsequently, the White House reversed its plan to restrict US chipmakers from selling Nvidia‘s highly sought-after H20 AI chips to China.