Nvidia has made a historic announcement, committing to a $500 billion investment in the United States to establish a robust AI chip manufacturing ecosystem.
This monumental move marks Nvidia’s first foray into domestic chip production, shifting away from its previous reliance on Taiwan-based manufacturing, particularly with Taiwan Semiconductor Manufacturing Co. (TSMC).
The decision aligns with broader U.S. policy goals to enhance domestic manufacturing capabilities and reduce dependence on foreign supply chains.
The investment will be spread over the next four years and involves partnerships with leading manufacturers such as TSMC, Foxconn, Wistron, Amkor, and SPIL. TSMC has already begun producing Nvidia’s Blackwell AI chips at its facility in Phoenix, Arizona.
Additionally, supercomputer manufacturing plants are planned in Houston and Dallas, Texas, with Foxconn and Wistron, respectively. These facilities are expected to commence mass production within the next 12 to 15 months.
Nvidia CEO Jensen Huang emphasized the strategic importance of this investment, highlighting how it will strengthen supply chains and meet the growing demand for AI chips and supercomputers.
Huang also praised the support from U.S. policymakers, noting that without their encouragement, the acceleration of domestic manufacturing would not have been possible.
The initiative is part of a broader trend among U.S. tech companies to bolster domestic manufacturing in response to trade policies and potential tariffs.
This significant investment is expected to generate hundreds of thousands of jobs across the tech and manufacturing sectors. It underscores Nvidia’s commitment to advanced manufacturing technologies, leveraging AI, robotics, and digital twin technologies to design and operate its facilities.
The move is seen as a crucial step in positioning the U.S. as a major hub for AI chip manufacturing, aligning with national goals to enhance technological self-reliance and reduce reliance on foreign supply chains.