Nvidia Corp., the dominant player in chips for artificial intelligence models, plans to produce as much as half a trillion dollars’ worth of AI infrastructure in the US over the next four years through manufacturing partnerships.
Production of Nvidia’s latest generation AI chip, known as Blackwell, has begun at Taiwan Semiconductor Manufacturing Co.’s new plant in Phoenix, the company said in a statement Monday. Nvidia is also building supercomputer manufacturing plants in Texas with Foxconn and Wistron Corp., and partnering with Amkor Technology Inc. and Siliconware Precision Industries Co. for packaging and testing operations in Arizona.
“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,” Jensen Huang, chief executive officer of the Santa Clara, California-based company, said in the statement.
The $500 billion figure refers to the combined value of all the goods Nvidia anticipates selling in to the supply chain for AI. In large part, the number reflects a commitment from the biggest cloud computing companies to build out and upgrade data centers with the latest gear.
That group, which includes Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc., is expected to spend $371 billion this year on AI facilities and computing resources, a jump of 44% from last year, according to a report published last month by Bloomberg Intelligence.
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Nvidia also said the effort would mark the first time that AI supercomputers are produced in the US, a development that President Donald Trump touted on Monday.
During an appearance at the White House, Trump said that Nvidia made the decision because of tariffs. “It’s one of the biggest announcements you’ll ever hear — because Nvidia, as you know, controls that almost the entire sector,” he said.
Like other recent US investment pledges by large US tech companies, Nvidia’s outlay includes plans that were already underway. Still, it represents a win for the president’s agenda, said City Index analyst Fiona Cincotta.
“This is what Trump is aiming for,” Cincotta said on Bloomberg Television. “It is moving that manufacturing back to the US, which is what Trump has pledged.”
Nvidia shares were initially up in the wake of the announcement, before paring the gains. The stock was down 17% this year through the end of last week, part of a market rout that has hit tech shares especially hard.
Each Nvidia Blackwell chip costs tens of thousands of dollars, with servers containing the semiconductors going for millions. Even at those steep prices, $500 billion worth of AI hardware would represent a massive quantity of goods — potentially hundreds of thousands of AI-oriented servers.
“Mass production” at the Foxconn and Wistron plants is expected to ramp up in the next 12 to 15 months, Nvidia said in the statement.
Electronics players around the world, including chipmakers, are reeling from shifting new tariff policies from the Trump administration. Over the weekend, Trump pledged he will still apply tariffs to phones, computers and popular consumer electronics, downplaying an exemption issued on Friday as just a procedural step in his overall push to remake US trade.
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Companies ranging from Apple Inc. to Eli Lilly & Co. have announced plans to spend billions of dollars boosting their US manufacturing presence since Trump’s election. Many of the plans were already in the works before the election, or closely track prior spending trends.
