Nvidia Announces $500 Billion Investment in U.S. AI Chip Manufacturing

Nvidia Corporation has unveiled plans to manufacture artificial intelligence (AI) chips domestically for the first time, marking a significant shift in its production strategy.

The company announced on Monday that it will invest up to $500 billion over the next four years to build AI infrastructure in the United States, in collaboration with major manufacturing partners such as Taiwan Semiconductor Manufacturing Co. (TSMC), Foxconn, Wistron, Amkor Technology, and Silicon Precision Industries.

The initiative includes commissioning over one million square feet of production space in Arizona and Texas. TSMC has already begun producing Nvidia's highly anticipated Blackwell chips at its Phoenix facility.

Nvidia is also partnering with Amkor and Silicon Precision Industries for packaging and testing operations in Arizona, where Amkor is constructing a $2 billion packaging facility.

In Texas, Nvidia plans to establish supercomputer manufacturing plants in Houston and Dallas through partnerships with Foxconn and Wistron. These facilities are expected to reach mass production within 12 to 15 months.

CEO Jensen Huang emphasized the importance of this move, stating, "The engines of the world’s AI infrastructure are being built in the United States for the first time. 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 announcement coincides with ongoing trade tensions and tariff policies under President Donald Trump’s administration, which have pressured companies to increase domestic manufacturing. Trump recently introduced exemptions for certain electronics products but hinted at new tariffs on imported semiconductors.

Nvidia’s decision aligns with broader efforts among semiconductor giants like TSMC and Apple to expand U.S.-based production amid geopolitical uncertainties.

The ambitious investment is expected to create hundreds of thousands of jobs and bolster America’s position as a leader in AI infrastructure development.

As demand for advanced AI chips surges globally, Nvidia’s move signals a strategic pivot toward strengthening its supply chain resilience while addressing escalating market needs.