Nvidia has unveiled plans to invest up to $500bn in AI server construction in the US over the next four years, collaborating with partners including TSMC, Foxconn, Wistron, Amkor, and SPIL. This initiative will involve producing Blackwell AI chips at TSMC’s facility located in Phoenix, Arizona, and establishing supercomputer manufacturing plants in Texas, with Foxconn and Wistron expected to begin operations in 12 to 15 months.
Nvidia has secured over one million square feet of space for manufacturing, aimed at developing and testing Blackwell chips in Arizona and AI supercomputers in Texas. The company said the supply chain for these products is complex, necessitating advanced technologies for manufacturing, packaging, assembly, and testing. Nvidia will work with Amkor and SPIL in Arizona for packaging and testing processes.
Nvidia’s strategic move aligns with tech industry amid tariff exemptions
This strategy aligns Nvidia with other technology firms that have pledged to increase US manufacturing presence amidst potential tariff threats. The announcement follows the US government’s decision to exempt electronics, such as smartphones and chips, from reciprocal tariffs on China, with a forthcoming announcement on tariff rates for imported chips, reported Reuters.
Nvidia has described its AI supercomputers as central to a new type of data centre focused on AI processing. Manufacturing Nvidia AI chips and supercomputers for these facilities is projected to create several jobs and contribute to economic security over the coming decades, said the chip firm.
The company will employ its advanced technologies, including AI, robotics, and digital twins, to design and operate these facilities. This includes using Nvidia Omniverse for creating digital twins of factories and Nvidia Isaac GR00T for developing robots to automate manufacturing tasks.
“The engines of the world’s AI infrastructure are being built in the US for the first time,” said Nvidia founder and CEO Jensen Huang. “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.”
In an interview with the Financial Times in March, Huang indicated that a significant portion of this investment might focus on domestic chip production, suggesting that the Trump administration could facilitate the AI industry’s growth in the US by backing manufacturing efforts.
Nvidia has been addressing investor concerns regarding sustained demand for its high-cost AI chips, especially with rising competition. This follows the launch of a chatbot by China’s DeepSeek, which reportedly uses fewer AI chips, prompting questions about potential changes in the AI hardware market.
Read more: Nvidia plans large-scale investment in US chip manufacturing over four years
