Nvidia plans $500 billion U.S. investment in AI server manufacturing

The initiative includes producing Blackwell AI chips at TSMC’s Arizona plant and building supercomputer factories in Texas

Nvidia announced plans on Monday to invest up to $500 billion in building AI servers in the United States over the next four years, partnering with firms including TSMC, Foxconn, and Wistron.

The move positions the AI chipmaker among a growing number of American tech companies aligning with the Trump administration’s push for domestic manufacturing.

The initiative includes production of Nvidia’s next-generation Blackwell AI chips at TSMC’s factory in Phoenix, Arizona, and the establishment of supercomputer manufacturing facilities in Texas by Foxconn and Wistron. These facilities are expected to become operational within 12 to 15 months.

Nvidia, which currently manufactures most of its processors in Taiwan, is making the shift as the administration considers new tariffs on imported chips. The announcement comes shortly after the U.S. granted tariff exemptions for electronics such as smartphones and chips, though tariff rates for imported semiconductors are expected to be revealed in the coming days.

“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,” Nvidia CEO Jensen Huang said on Monday.

Apple, which also relies heavily on manufacturing in China, pledged in February to invest $500 billion in the U.S. over the next four years, including a Texas facility dedicated to AI server production.

Former President Donald Trump, speaking at a White House briefing, acknowledged Nvidia’s decision, attributing it to the upcoming presidential election and the looming threat of tariffs. “The reason they did it is because of the election on November 5, and because of the thing called tariffs,” Trump said.

Huang previously indicated in March that Nvidia did not expect significant short-term effects from U.S. tariffs but would consider a long-term shift to domestic production.

Nvidia said the new U.S.-based manufacturing plans will support the creation of hundreds of thousands of jobs over the coming decades, signaling a broader transformation in the global tech supply chain as companies reassess manufacturing strategies in response to geopolitical and trade pressures.

Monitoring Desk
Monitoring Desk
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