Nvidia says it has outsourced more than 1 million square feet of manufacturing space to build and test AI chips in Arizona and Texas as part of its efforts to move a portion of its production to the US
Chipmaker says Nvidia Blackwell Chips is beginning production at TSMC’s chip plant in Phoenix, Arizona, with Nvidia building a “supercomputer” manufacturing plant in Texas and Foxconn in Houston is building with Wistron in Dallas. In Arizona, Nvidia is partnering with Amkor and Spil for packaging and testing operations, the company added.
According to Nvidia, mass production at its Houston and Dallas plants is expected to increase in the next 12-15 months. Within the next four years, the company aims to produce up to $50 trillion in AI infrastructure in the United States.
“The first time the world’s AI infrastructure engine is being built in the US,” Nvidia CEO Jensen Huang said in a statement. “The addition of American manufacturing will meet the incredible demand for AI chips and supercomputers, strengthen our supply chain and increase our resilience.”
The announcement reportedly narrowly circumvented export controls for H20 chips after Nvidia signed a domestic manufacturing agreement with the Trump administration. According to NPR, Nvidia’s most advanced chip, H20, could still be exported to China, escaped thanks to its promise to pour capital from Huang into components of its US-based AI data centers.
Many AI companies other than Nvidia have resorted to Trump’s “American first” approach to AI to curry favor with the administration. Openai collaborated with SoftBank and Oracle in January on a $500 billion US data center initiative called the Stargate Project. Microsoft pledged $80 billion to build AI data centers in 2025, with 50% of which allocated to the US.
Trump has been strongly armed with certain partners in recent months to get the results he wants. He reportedly told TSMC that if the company did not build a new chip factory in the US, it would have to pay up to 100% tax.
Nvidia argues that the US chip manufacturing initiative can create “hunds of thousands” of jobs and drive “trillions of dollars” in economic activity over the coming decades. However, efforts to increase the domestic chip-making industry face fearsome and growing challenges.
Retaliation tariffs and trade restrictions from China threaten the supply of raw materials needed to build chips in the US, causing a serious shortage of skilled frontline workers to assemble chips.
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