Nvidia said on Monday that it has allocated over one million square feet of manufacturing space in Arizona and Texas to produce and test AI chips, as part of its initiative to relocate a segment of its production to the United States.
The semiconductor manufacturer announced the commencement of Blackwell chip production at TSMC’s facilities in Phoenix, Arizona, and said that Nvidia is establishing “supercomputer” manufacturing units in Texas, collaborating with Foxconn in Houston and Wistron in Dallas.
Nvidia is collaborating with Amkor and SPIL for packaging and testing operations in Arizona, the firm said.
Mass production at the Houston and Dallas facilities is anticipated to escalate during the next 12 to 15 months, and within four years, the business intends to manufacture up to $500 billion worth of AI infrastructure in the United States.
Nvidia CEO Jensen Huang said, “For the first time, the engines of the world’s AI infrastructure are being constructed in the United States.”
“Incorporating American manufacturing enhances our capacity to satisfy the surging demand for AI chips and supercomputers, fortifies our supply chain, and amplifies our resilience.”
The disclosure follows reports that Nvidia barely evaded export limitations on its H20 chip by securing a local manufacturing agreement with the Trump administration.
NPR reports that Nvidia’s H20, its most advanced processor eligible for sale to China, was exempted due to Huang’s commitment to invest in components for AI data centers located in the United States.
Numerous AI businesses have embraced Trump’s “America-first” strategy in efforts to gain favor with the government.
In January, OpenAI collaborated with SoftBank and Oracle on a $500 billion U.S. data center plan known as the Stargate Project, while Microsoft committed $80 billion to establish AI data centers in its 2025 fiscal year, allocating 50% of that amount for the U.S.
Trump has coerced certain allies to get his preferred results in recent months. He allegedly informed TSMC that it would incur a tax of up to 100% if the business failed to establish new chip manufacturing facilities in the U.S.
Nvidia said that its U.S. chip manufacturing operations may generate “hundreds of thousands” of jobs and stimulate “trillions of dollars” in economic activity in the next decades.
However, initiatives to enhance the local semiconductor manufacturing sector encounter significant and escalating obstacles.
China’s retaliatory tariffs and trade restrictions jeopardize the availability of essential raw materials for chip manufacturing in the U.S., while there exists a significant lack of experienced frontline workers for chip assembly.
Simultaneously, the Trump administration’s actions to subvert the Chips Act, legislation enacted in 2022 to provide billions in incentives to semiconductor manufacturers, may dissuade future investments from major chip producers.
