Nvidia plans to manufacture AI chips in the US for the first time
[April 15, 2025] By
SARAH PARVINI
LOS ANGELES (AP) — Nvidia announced Monday that it will produce its
artificial intelligence super computers in the United States for the
first time.
The tech giant said it has commissioned more than one million square
feet of manufacturing space to build and test its specialized Blackwell
chips in Arizona and AI supercomputers in Texas — part of an investment
the company said will produce up to half a trillion dollars of AI
infrastructure in the next four years.
“The engines of the world’s AI infrastructure are being built in the
United States for the first time,” Nvidia founder Jensen Huang said in a
statement. “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.”
Nvidia’s announcement comes as the Trump administration has said that
tariff exemptions on electronics like smartphones and laptops are only a
temporary reprieve until officials develop a new tariff approach
specific to the semiconductor industry.
White House officials, including President Donald Trump himself, spent
Sunday downplaying the significance of exemptions that lessen but won’t
eliminate the effect of U.S. tariffs on imports of popular consumer
devices and their key components.
“They’re exempt from the reciprocal tariffs but they’re included in the
semiconductor tariffs, which are coming in probably a month or two,”
U.S. Commerce Secretary Howard Lutnick told ABC’s “This Week” on Sunday.
Nvidia said in a post on its website that it has started Blackwell
production at Taiwan Semiconductor Manufacturing Co. chip plants in
Phoenix. The Santa Clara, California-based chip company is also building
supercomputer manufacturing plants in Texas — with Foxconn in Houston
and Wistron in Dallas.
[to top of second column] |
 Nvidia's AI super computers will
serve as the engines for AI factories, “a new type of data center
created for the sole purpose of processing artificial intelligence,”
the company said, adding that manufacturing in the U.S. will create
“hundreds of thousands of jobs and drive trillions of dollars in
economic security over the coming decades."
Mass production at both plants is expected to ramp up in the next
12-15 months, Nvidia said. The company also plans on partnering with
Taiwan-based company SPIL and Amkor for “packaging and testing
operations” in Arizona.
In a statement Monday, the White House called Nvidia’s move “the
Trump Effect in action.”
Trump “has made U.S.-based chips manufacturing a priority as part of
his relentless pursuit of an American manufacturing renaissance, and
it’s paying off — with trillions of dollars in new investments
secured in the tech sector alone,” the White House said.
Earlier this year, Trump announced a joint venture investing up to
$500 billion for infrastructure tied to artificial intelligence by a
new partnership formed by OpenAI, Oracle and SoftBank. The new
entity, Stargate, was tasked with building out data centers and the
electricity generation needed for the further development of the
fast-evolving AI in Texas, according to the White House.
The initial investment is expected to be $100 billion and could
reach five times that sum.
All contents © copyright 2025 Associated Press. All rights reserved
 |
