- Nvidia (NVDA) announced a $500 billion plan to produce AI supercomputers entirely in the U.S. over the next four years, aiming to meet global demand and strengthen supply chains.
- The company is manufacturing Blackwell AI chips in Arizona with TSMC and building supercomputer facilities in Texas with Foxconn and Wistron, targeting mass production in 12 to 15 months.
- Nvidia is using digital twins and specialized robots to optimize its U.S. factories, dedicating over one million square feet to enhance domestic chip production.
Nvidia (NVDA), a leading force behind the AI boom, announced Monday that it will begin producing NVIDIA AI supercomputers entirely in the U.S. for the first time. The company plans to invest up to $500 billion in AI infrastructure over the next four years through its manufacturing partnerships, reinforcing its commitment to domestic production. This bold initiative reflects Nvidia’s response to surging AI demand while strengthening its supply chain by bringing manufacturing closer to home.
By investing heavily in U.S.-based manufacturing, Nvidia aims to create a more reliable and efficient system for building the powerful chips and supercomputers that drive AI applications. CEO Jensen Huang emphasized that producing in the U.S. will help meet global needs faster while making the company less vulnerable to disruptions in international supply chains.
This move comes at a time when U.S. trade policies are shifting. President Donald Trump recently introduced tariffs of 32% on goods from Taiwan, where Nvidia’s chips are mostly made, and 145% on products from China, creating challenges for tech companies. However, on Friday evening, exemptions were granted for chips and other tech components, easing concerns for now. Still, Trump’s mention on Sunday of possible new tariffs on semiconductors suggests ongoing uncertainty that could impact Nvidia’s plans.
In Arizona, Nvidia has started producing its advanced Blackwell AI chips at facilities run by Taiwan Semiconductor (TSM). The company is also working with Amkor and Siliconware Precision Industries in Arizona to handle chip packaging and testing, which are essential steps to ensure the chips work correctly. Nvidia is expanding further in Texas, partnering with Foxconn in Houston and Wistron in Dallas to build factories for its AI supercomputers. These new plants are expected to start large-scale production in 12 to 15 months, a fast timeline that shows Nvidia’s urgency to ramp up capacity.
To make these factories as efficient as possible, Nvidia is using its own technology. It’s creating digital twins—virtual versions of the factories that let engineers test and improve operations before anything is built. Nvidia is also designing robots to automate specialized tasks, speeding up production and reducing errors. With over one million square feet of manufacturing space dedicated to these efforts, Nvidia is making a massive commitment to U.S. production.
While Nvidia designs its graphics processing units (GPUs) itself, it relies on partners like TSMC to manufacture the chips. By building stronger ties with U.S.-based partners and investing $500 billion, Nvidia is helping to grow the country’s role in producing cutting-edge technology. This effort not only supports Nvidia’s growth but also aligns with broader goals to make the U.S. a leader in AI and chipmaking, ensuring that advanced technology is made domestically in a competitive global market.
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