NVIDIA said it plans to build up to $500 billion in AI servers in the U.S. over the next four years, and with the help of partners such as TSMC, the latest U.S. technology company, a push to support the Trump administration in pushing local manufacturing.
Monday’s announcement includes the production of its Blackwell AI chips at TSMC’s factory in Phoenix, Arizona, and supercomputer manufacturing plants in Texas at Foxconn and Wistron in Texas, which are expected to grow in 12 to 15 months.
The move has brought AI chip giants consistent, most of which are made in Taiwan, with processors being a group of technology companies that promise to bring manufacturing back to the United States due to a huge tariff threat from President Donald Trump.
“The NVIDIA is unlikely to transfer any production to the United States without pressure on the Trump administration,” said Gil Luria, an analyst at Da Davidson.
“The half-trillion dollar figure may be exaggerated, just like Apple has made a half-trillion commitment.”
Apple assembled most of its iPhones in China in February, promising a half million dollar investment in the U.S. investment over the next four years, including a factory AI server in Texas.
NVIDIA’s announcement comes hours after the U.S. exempts electronic products such as smartphones and chips, but says it will announce tariffs on imported chips next week.
The exemption shows that the Trump Administration is increasingly conscious of the pain of tariffs that may be for inflation-averse consumers and the booming AI industry that relies on tools related to Chinese and Taiwan chips.
“Adding manufacturing in the United States can help us better meet the incredible and growing demand for AI chips and supercomputers, strengthen our supply chains and increase our resilience,” NVIDIA CEO Jensen Huang said on Monday.
Nvidia said that in the United States, manufacturing AI chips and supercomputers will create hundreds of thousands of jobs in the coming decades.
“They did this because of the November 5 election, and the so-called tariffs,” Trump said in a White House briefing.
Huang said in March that NVIDIA had little short-term impact on the higher U.S. tariffs, but in the long run, production will be transferred to the U.S. without a timeline.
The company said Monday that TSMC has started producing its latest generation of chips at its Arizona plant.
