• Nvidia plans to produce $500 billion worth of AI chips and supercomputers in the U.S. over four years.
• Production of Blackwell chips has begun at TSMC's Phoenix facility.
• New supercomputer manufacturing plants are being developed in Texas with Foxconn and Wistron.
• This marks the first instance of Nvidia producing AI supercomputers entirely in the U.S.
• The initiative aims to bolster national security and economic independence amid trade tensions.

Nvidia has announced its ambitious plan to manufacture up to $500 billion worth of AI infrastructure in the United States over the next four years. This extensive initiative will include the production of AI supercomputer chips, known as Blackwell, marking a significant step towards enhancing local manufacturing amid ongoing trade tensions and tariffs imposed by the U.S. government. According to Nvidia, production of the Blackwell chips has already started at Taiwan Semiconductor Manufacturing Company's new facility in Phoenix, Arizona, according to Channel News Asia.

Alongside its Arizona operations, Nvidia is also constructing supercomputer manufacturing plants in Texas, partnering with prominent manufacturers such as Foxconn and Wistron. Mass production at these Texas plants is anticipated to ramp up within the next 12 to 15 months. Nvidia's CEO, Jensen Huang, emphasized the importance of this American production, stating, "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," according to India Times.

This commitment to domestic manufacturing not only aims to satisfy the increasing demand but also serves as a strategic move amid rising geopolitical tensions, particularly involving top chipmaking countries like China and Taiwan. The initiative aligns with President Trump's agenda to boost local production. Trump stated, "It's one of the biggest announcements you'll ever hear—because Nvidia, as you know, controls that almost the entire sector," as quoted by South China Morning Post.

This investment reflects a broader commitment from major tech companies to localize manufacturing, with Nvidia's strategy particularly focusing on national security as the U.S. tightens controls on high-end AI chip exports to other countries. The development has also been praised by the Biden administration, which sees it as beneficial for the American economy and workforce, according to The Hill.