Nvidia Announces AI Chip Manufacturing in the US
Breaking Ground in Arizona and Texas
Nvidia announced plans today to manufacture AI chips and build complete supercomputers on US soil for the first time, commissioning over one million square feet of manufacturing space across Arizona and Texas. The company has already begun producing its Blackwell chips at Taiwan Semiconductor Manufacturing Co’s (TSMC) facilities in Phoenix. Until now, the company’s AI chips have been manufactured exclusively in Taiwan, presenting geopolitical risks to the supply chain.
Manufacturing Partnerships
The company is setting up supercomputer manufacturing plants in Texas—partnering with Foxconn in Houston and Wistron in Dallas, with mass production expected to ramp up within 12 to 15 months. For chip packaging and testing operations, Nvidia is collaborating with Amkor and SPIL in Arizona. The supply chain for building the kinds of advanced GPUs that accelerate training and running AI models requires advanced manufacturing, packaging, and testing technologies that each partner works together to provide.
CEO’s Statement
"The engines of the world’s AI infrastructure are being built in the United States for the first time," said Jensen Huang, Nvidia’s founder and CEO, in a news release. "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."
Geopolitical Significance
This move comes amid rising US-China tensions and the Trump administration’s push for domestic manufacturing. It also comes days after Nvidia reportedly avoided export controls on its H20 chip by striking a domestic manufacturing deal with the Trump administration. The H20 is Nvidia’s most powerful AI chip that can still be legally exported to China under current US restrictions; it’s designed with reduced specifications to comply with export controls while maintaining compatibility with Nvidia’s CUDA platform.
Conclusion
Nvidia’s decision to manufacture AI chips and supercomputers in the US is a significant move that will strengthen the company’s supply chain and resiliency. It also marks a shift in the global chip manufacturing landscape, as the US will now play a more prominent role in the production of high-end AI chips.
FAQs
Q: Why is Nvidia manufacturing AI chips in the US?
A: Nvidia is manufacturing AI chips in the US to reduce its reliance on international supply chains and to strengthen its supply chain and resiliency.
Q: Who are Nvidia’s manufacturing partners in the US?
A: Nvidia’s manufacturing partners in the US include TSMC, Foxconn, Wistron, Amkor, and SPIL.
Q: What is the significance of this move amid US-China tensions?
A: This move is significant amid US-China tensions, as it demonstrates the US’s ability to produce high-end AI chips and supercomputers domestically.
Q: Will this move affect the global chip manufacturing landscape?
A: Yes, this move will affect the global chip manufacturing landscape, as the US will now play a more prominent role in the production of high-end AI chips.
