Chipmaker Nvidia has announced plans to build artificial intelligence servers worth as much as $500 billion in the United States over the next four years, aided by partnerships with companies such as TSMC.
This announcement marks Nvidia as the latest U.S. tech firm to support a move by President Donald Trump’s administration focused on increasing local manufacturing.
The announcement outlines the production of Nvidia’s Blackwell AI chips at TSMC’s factory in Phoenix, Arizona, along with the establishment of supercomputer manufacturing plants in Texas by Foxconn and Wistron.
These facilities are anticipated to ramp up operations within the next 12 to 15 months.
Nvidia CEO Jensen Huang emphasized the importance of domestic manufacturing, stating, “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.”
He further added that the production of AI chips and supercomputers in the U.S. could result in hundreds of thousands of jobs over the coming decades.
Earlier in March, Huang mentioned that Nvidia did not foresee significant short-term impacts from higher U.S. tariffs but indicated a long-term shift towards U.S. production, although no specific timeline was provided.
In a report from the Yale Budget Lab, it was suggested that tariffs could result in approximately 740,000 job losses across the U.S. economy by the end of the year.
Nvidia’s recent announcement aligns the AI chip giant, whose processors are primarily produced in Taiwan, with a range of tech firms that have committed to bringing manufacturing back to American soil amid potential steep tariffs from the Trump administration.
The White House praised the initiative, stating, “Onshoring these industries is good for the American worker, good for the American economy, and good for American national security – and the best is yet to come.”
However, analysts are skeptical about the magnitude of Nvidia’s investment.
DA Davidson analyst Gil Luria remarked, “It is unlikely Nvidia would have moved any production to the U.S. if it was not for pressure from the Trump administration.
The half a trillion number is likely hyperbole in the same way Apple made a half a trillion promise.”
Apple has also made significant investment promises, previously committing to a $500 billion expansion in the U.S.
In February, the Silicon Valley-based company announced plans to open a new manufacturing facility in Houston, Texas.
While this investment is the largest one Apple has announced, the company has made similar commitments under both President Joe Biden in 2021 for $430 billion and during Trump’s first term in 2018 for $350 billion.
Nvidia’s announcement comes just three days after Trump exempted electronics such as smartphones and chips from his reciprocal tariffs on China.
The White House is expected to announce a new tariff rate on imported chips within the coming week.
These exemptions suggest a growing awareness within the Trump administration of the potential inflationary pressures that such tariffs could impose on U.S. consumers, as well as on the burgeoning AI industry that relies heavily on chip-related tools from China and Taiwan.
Nvidia disclosed that TSMC has begun production of its latest generation of chips at its Arizona factory.
Despite this significant announcement, investor concerns remain high, as Nvidia’s stock was trading down 0.8 percent as of noon in New York (16:00 GMT).
image source from：https://www.aljazeera.com/economy/2025/4/14/nvidia-commits-to-500bn-ai-server-production-in-the-us
