Nvidia plans to manufacture some AI chips in the US, launching large-scale operations in Arizona and Texas to support the country’s growing artificial intelligence ambitions.
On Monday, the tech giant revealed that it has secured over a million square feet of production space for advanced chip manufacturing and testing in the United States. This strategic move is part of Nvidia’s broader mission to localize the production of its AI chipsets, including its highly anticipated Blackwell processors, which have become critical for powering next-generation AI data centers.
The news that Nvidia plans to manufacture some AI chips in the US underscores the company’s effort to diversify its supply chain and reduce its dependence on overseas production hubs, especially amid tightening geopolitical tensions and growing U.S. regulatory pressures.
Arizona and Texas at the Heart of Nvidia’s AI Manufacturing Ambitions
According to Nvidia, the initial manufacturing of its Blackwell AI chips has already begun at Taiwan Semiconductor Manufacturing Company’s (TSMC) facility in Phoenix, Arizona. To further support the assembly and packaging phase, Nvidia has also partnered with Amkor Technology and SPIL (Siliconware Precision Industries) in the same state.
In Texas, the company is working closely with Foxconn in Houston and Wistron in Dallas to establish what it describes as “supercomputer manufacturing plants.” Mass production at these Texas facilities is projected to ramp up over the next 12 to 15 months, with full-scale operational capacity expected to contribute significantly to Nvidia’s domestic supply chain.
Looking ahead, the company envisions that its U.S.-based manufacturing efforts could eventually contribute to half-a-trillion dollars’ worth of AI infrastructure within the next four years.
Strengthening Supply Chains and Resilience
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia CEO Jensen Huang stated, highlighting the monumental shift this development represents for both the company and the broader tech ecosystem.
Huang emphasized that by moving significant portions of its AI chip production stateside, Nvidia hopes to better meet rising demand, ensure greater supply chain resilience, and fortify its position amid rising global competition.
Political Pressure and Strategic Partnerships
The announcement that Nvidia plans to manufacture some AI chips in the US comes at a politically charged moment, just days after the company reportedly avoided U.S. export restrictions on its powerful H20 chips. According to NPR, Nvidia reached an understanding with the Trump administration, promising to channel substantial investment into U.S.-based AI components, which ultimately allowed the H20 chip to escape a potential export ban.
This trend of domestic investment is not isolated to Nvidia alone. OpenAI, Microsoft, and other leading AI players have also aligned themselves with the U.S. government’s push for AI sovereignty. OpenAI, for instance, recently partnered with SoftBank and Oracle for the $500 billion “Stargate Project,” a massive U.S.-based data center initiative, while Microsoft pledged $80 billion for AI data centers — half of which is slated for domestic builds.
A Road Paved with Challenges
While the move positions Nvidia as a leader in reshoring advanced chip manufacturing, the road ahead is fraught with hurdles. Supply chain bottlenecks — particularly in sourcing critical raw materials from China — remain a looming threat. Additionally, the U.S. faces an acute shortage of skilled workers in semiconductor manufacturing, a problem industry insiders say could stifle progress unless addressed quickly.
The Trump administration’s wavering commitment to fully fund the Chips Act, a federal incentive program passed in 2022, also casts a shadow over future semiconductor investments. Despite these headwinds, Nvidia remains optimistic that its U.S. chipmaking plans will generate “hundreds of thousands” of new jobs and fuel “trillions of dollars” in economic activity in the coming decades.
The Future of American-Made AI Chips
The fact that Nvidia plans to manufacture some AI chips in the US is a clear sign that the AI arms race is entering a new era — one where geography is just as important as technology. With AI’s influence expanding into nearly every corner of modern life, this move could redefine not just how chips are made, but where AI innovations are born.
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