Nvidia U.S. AI chip manufacturing moves production back to the U.S. for key innovations. The company announced plans to manufacture its high-powered Blackwell AI chips entirely in the United States, a first in its history.
In a blog post on Monday, Nvidia revealed that it has commissioned over 1 million square feet of manufacturing and testing space across Phoenix, Arizona, and Houston and Dallas, Texas. While production has already begun through Taiwan Semiconductor Manufacturing Co. (TSMC) facilities in Phoenix, full-scale output from Nvidia’s U.S.-based plants is expected within a year.
A Strategic Shift in AI Chip Production
Nvidia U.S. AI chip manufacturing sees CEO Jensen Huang call the move vital for supply chain resilience and AI chip demand.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Huang stated.
This decision aligns with Nvidia’s broader strategy to invest hundreds of billions of dollars in AI infrastructure across the U.S. over the next four years.
Political Backdrop and Policy Tensions
The White House quickly framed Nvidia’s move as part of “the Trump Effect,” crediting the former president for sparking a manufacturing renaissance in the U.S.
Yet, Trump’s stance on semiconductor policy remains mixed. He has teased new tariffs on imported chips, even as he pushes to repeal the bipartisan CHIPS Act — a law passed under President Biden that allocated $280 billion to support the domestic semiconductor industry.
Despite that contradiction, Nvidia’s increased domestic investment has apparently influenced policy. According to NPR, the company’s renewed U.S. commitment helped reverse a White House decision to ban exports of Nvidia’s H20 AI chips to China.
What’s Next for Nvidia?
Nvidia’s deepening ties to U.S. production could reshape the global semiconductor landscape, especially as demand for AI chips soars. With Trump signaling further trade protectionism, Nvidia appears to be hedging its bets by prioritizing U.S. supply chains.
Source: NBC News
