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Nvidia announces US AI supercomputer plants amid tariff shifts | Scoop
Nvidia has announced that it will build factories to produce AI supercomputers in the US. – Nvidia pic, April 15, 2025
Corporate

Nvidia announces US AI supercomputer plants amid tariff shifts

Company says moving production would help strengthen supply chains, enhance its resiliency as Trump slaps high tariffs on China

Main Author Image
Maya Zaharudin
Updated
1:09 PM MYT

 

KUALA LUMPUR – Leading chipmaker and tech company Nvidia has announced plans to produce AI supercomputers entirely in the United States, aligning with the Trump administration’s push for more domestic manufacturing. This follows the US’ imposition of high tariffs on products from China, where the company sourced much of its chip production.

Nvidia CEO Jensen Huang said in a statement that the move to increase US-based production is in part a response to these evolving trade policies. Nvidia confirmed the shift in a blog post, where the company explained that moving production to the US would also help strengthen supply chains and enhance its resiliency. 

The company’s broader strategy to meet the growing demand for AI infrastructure includes an estimated US$500 billion in AI-related production over the next four years. 

CEO Jensen Huang also highlighted the benefits of US-based manufacturing, saying that it would help the company better meet the demand for AI chips and supercomputers, as well as bolster the company’s supply chain and boost resiliency.

The company plans to manufacture its Blackwell AI chips in Arizona and establish supercomputer production facilities in Texas. It is also working with partners such as Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn to ramp up production within the next 12 to 15 months. 

According to Al Jazeera, Nvidia has already started production of its Blackwell chips at TSMC’s factory in Phoenix, Arizona. 

Nvidia’s new facilities will utilise advanced AI and robotics technologies to streamline manufacturing, including the use of digital twins to design and operate the factories. The total space dedicated to Nvidia’s AI production will exceed one million square feet across sites in Arizona and Texas. 

As part of the development, Nvidia will also collaborate with Amkor and SPIL for chip packaging and testing operations in Arizona, according to Nvidia’s blog post. 

This move is part of a larger trend among US tech companies to bring more manufacturing back to American soil, a shift that has gained momentum under the Trump administration’s trade policies. 

The White House has praised Nvidia’s announcement as a sign of success for its focus on “onshoring jobs and boosting domestic production.” 

Currently, Nvidia’s stock is trading at US$112.04, up 1% on the Nasdaq, as reported by Bernama. – April 15, 2025

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