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Nvidia will make artificial intelligence (AI) supercomputers in the United States for the first time, responding to pressure from the Trump administration.
The tech giant announced on Monday that it had secured over one million square feet of manufacturing space in Arizona and Texas.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia CEO Jensen Huang said. “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.”
This move comes as the White House threatens new semiconductor tariffs. Trump just removed tariffs on phones and laptops last weekend, but said this change wouldn’t last long.
“They’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Commerce Secretary Howard Lutnick told ABC on Sunday.
Nvidia’s Blackwell chips have already started production at Taiwan Semiconductor Manufacturing Co. (TSMC) plants in Phoenix. The company is also building new facilities with Foxconn in Houston and Wistron in Dallas, where mass production should begin within 12-15 months.
This marks a big change for Nvidia, which has typically designed its chips in the US but manufactured them overseas. The company plans to produce up to $500 billion worth of AI infrastructure in the United States over the next four years. These facilities will power what Nvidia calls “AI factories” – special data centers built specifically for artificial intelligence processing.
The manufacturing expansion aims to create “hundreds of thousands of jobs” and generate trillions of dollars in economic activity over the coming decades, according to Nvidia.
The White House quickly praised Nvidia’s announcement as “the Trump Effect in action,” connecting it directly to the administration’s push for more US manufacturing.
Nvidia’s announcement follows similar moves by other tech companies. Earlier this year, OpenAI, Oracle, and SoftBank announced a joint venture worth up to $500 billion for AI infrastructure in Texas.
Despite the potential economic benefits, experts point to several challenges ahead. These include supply chain problems, not enough skilled workers for chip assembly, and questions about the future of the CHIPS Act, which provides billions in funding for US chip production but which Trump has threatened to repeal.
The back-and-forth on tariffs has made planning hard for tech companies. This unclear trade policy environment has already caused Nvidia’s stock value to drop sharply this year.
Tech companies now must weigh the risk of future tariffs against the high cost of moving to the US. For Nvidia, building factories in America costs a lot, but it may protect them from future trade problems.
