Nvidia to begin manufacturing AI chips in the U.S. for the first time
Pranjal Chandra | Apr 14, 2025, 22:01 IST
Nvidia is significantly shifting its manufacturing strategy by producing powerful AI supercomputer chips in the U.S., securing space in Arizona, Texas. Initial Blackwell chip production has already commenced at TSMC's Phoenix factories. CEO Jensen Huang emphasizes the strategic importance of American manufacturing to meet AI demand and strengthen the supply chain.
Nvidia has announced plans to produce some of its powerful AI supercomputer chips entirely within the United States, marking a major shift in its manufacturing strategy.
In a blog post published Monday, the semiconductor giant revealed it has secured more than 1 million square feet of manufacturing space in Phoenix, Arizona, to build and test its new Blackwell chips. Additionally, Nvidia is developing supercomputer production facilities in Houston and Dallas, with full-scale operations expected to ramp up within the next year.
While the U.S. facilities are still scaling up, Nvidia confirmed that initial Blackwell chip production has already begun at Phoenix-based factories run by Taiwan Semiconductor Manufacturing Company (TSMC) a key partner in the global chip supply chain.
This U.S.-focused move comes amid a growing push among major semiconductor companies, including Foxconn and TSMC, to invest in American infrastructure for chip manufacturing.
Nvidia CEO Jensen Huang emphasized the strategic importance of American manufacturing in meeting rising demand for AI technology.
This announcement builds on Nvidia’s previously stated commitment to invest hundreds of billions of dollars into U.S.-based AI infrastructure over the next four years.
The White House welcomed the announcement, attributing it to what it called the “Trump Effect.” A statement issued Monday praised former President Donald Trump’s efforts to prioritize domestic chip manufacturing.
However, Trump has sent mixed signals on chip policy. While he supports new tariffs on imported semiconductors, he has also called for the repeal of the 2022 bipartisan CHIPS Act, which authorized $280 billion in funding to boost the domestic semiconductor industry. So far, congressional Republicans have shown little interest in scrapping the law.
Nvidia’s growing alignment with the Trump administration has drawn attention. Earlier this month, Huang reportedly attended a $1 million-per-person dinner at Trump’s Mar-a-Lago resort in Florida.
Following that meeting, NPR reported that Nvidia pledged a renewed commitment to U.S. investment. In turn, the White House reversed a plan to bar Nvidia from selling its popular H20 AI chips to China — a policy reversal that highlights the delicate intersection of business, innovation, and geopolitics.
In a blog post published Monday, the semiconductor giant revealed it has secured more than 1 million square feet of manufacturing space in Phoenix, Arizona, to build and test its new Blackwell chips. Additionally, Nvidia is developing supercomputer production facilities in Houston and Dallas, with full-scale operations expected to ramp up within the next year.
Production already underway through TSMC in Arizona
This U.S.-focused move comes amid a growing push among major semiconductor companies, including Foxconn and TSMC, to invest in American infrastructure for chip manufacturing.
CEO Jensen Huang: "engines of AI built in the U.S."
This announcement builds on Nvidia’s previously stated commitment to invest hundreds of billions of dollars into U.S.-based AI infrastructure over the next four years.
Political spotlight: The “Trump effect”?
However, Trump has sent mixed signals on chip policy. While he supports new tariffs on imported semiconductors, he has also called for the repeal of the 2022 bipartisan CHIPS Act, which authorized $280 billion in funding to boost the domestic semiconductor industry. So far, congressional Republicans have shown little interest in scrapping the law.
Behind the scenes: political ties and policy shifts
Following that meeting, NPR reported that Nvidia pledged a renewed commitment to U.S. investment. In turn, the White House reversed a plan to bar Nvidia from selling its popular H20 AI chips to China — a policy reversal that highlights the delicate intersection of business, innovation, and geopolitics.