Nvidia is making big moves to bring more of its chip production to the United States. On Monday, the company said it has added over a million square feet of manufacturing space in Arizona and Texas. The goal: to build and test its latest AI chips right on U.S. soil.
Production of Nvidia’s new Blackwell chips is already underway at TSMC’s facilities in Phoenix, Arizona. Meanwhile, the company is setting up supercomputer manufacturing sites in Texas — one with Foxconn in Houston, and another with Wistron in Dallas.
Nvidia is now teaming up with Amkor and SPIL in Arizona for chip packaging and testing. These are crital steps which are necessary in getting the chips ready for real-world use.
Expected Date for Mass Production
In the next 12 to 15 months, Nvidia expects mass production to begin in Houston and Dallas. The company is projected to be able to produce about $500 million worth of AI infrastructure within the U.S.
Jensen Huang, Nvidia’s CEO, said,
“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.”
Timing Is No Coincidence
This announcement comes just days after reports said Nvidia avoided U.S. export controls on its H20 chip. That chip is one of the last advanced Nvidia products still allowed for export to China.
According to NPR, Nvidia secured that exemption by agreeing to invest heavily in domestic production. CEO Huang reportedly struck a deal with the Trump administration to keep making key components for U.S.-based AI data centers.
Others Are Following Suit
Nvidia isn’t alone in embracing this “America-first” push in AI. Several other tech giants have made big domestic commitments:
- OpenAI, with SoftBank and Oracle, is behind the $500 billion Stargate Project to build AI data centers in the U.S.
- Microsoft plans to spend $80 billion on AI infrastructure next year, with half of that in the U.S.
Sources say former President Trump has been aggressive in demanding local investment. He reportedly told TSMC it could face 100% tariffs unless it built chip factories in America.
Economic Impact Could Be Huge
Nvidia believes this shift could create “hundreds of thousands” of U.S. jobs and generate trillions of dollars in economic activity over the coming decades. But there are challenges.
Big Goals, Big Challenges
The U.S. still lacks enough skilled workers to support chip production. Building advanced chips requires expertise in engineering, cleanroom assembly, and precise testing — all of which are in short supply. In addition, China may respond with retaliatory tariffs or by restricting access to raw materials needed for chipmaking.
There are also political hurdles. The Trump administration has made moves that may weaken the Chips Act, a law passed in 2022 that promised billions in subsidies to chipmakers. If that support dries up, it could scare off future investment.
Conclusion
Nvidia’s bold plan is a clear testament to how seriously the company is taking the future of AI infrastructure. Nvidia’s decision to bring chip production home underscores the company’s quest to grow further and attain home security. However, money is not everything in the chip-making space. The company would need a strong workforce, smart global moves and a peaceful political environment for the company to thrive.
Source: Giz China
