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Nvidia to bring production back to the US, promises $500 billion in AI investment
2025-04-15 18:44:43 / BOTA
Nvidia said it plans to build up to $500 billion worth of artificial intelligence servers in the US over the next four years. The investment will include help from partners such as TSMC, the latest US technology firm to support the Trump administration's push for domestic manufacturing.
The announcement includes manufacturing its Blackwell AI chips in Phoenix, Arizona, and supercomputer manufacturing plants in Texas, expected to be completed in 12 to 15 months.
The move joins the chip giant in a group of technology firms that have pledged to bring production back to the US amid threats of steep tariffs from President Donald Trump. Until now, most of Nvidia's processors are made in Taiwan.
"It is unlikely that the company would move any production to the US if it were not under pressure from the Trump administration. The half-trillion figure is probably hyperbole, in the same way that Apple made a similar promise," analysts say.
Apple, which assembles most of its iPhones in China, in February pledged half a trillion dollars in investment in the US over the next four years, including a factory in Texas for artificial intelligence servers.
Nvidia's announcement comes after the United States exempted electronic devices such as smartphones and chips from reciprocal tariffs on China, but said it would announce the tariff rate soon.
The exemptions indicate a growing awareness within the Trump administration of the pain that tariffs could inflict on inflation-weary consumers, as well as on the booming artificial intelligence industry, which depends on China and Taiwan.
"Increasing American manufacturing helps us better meet the extraordinary demand for chips and supercomputers, strengthens our supply chain, and increases our resilience ," said Nvidia CEO Jensen Huang.
The production of artificial intelligence chips and supercomputers in the US will create hundreds of thousands of jobs in the coming decades, Nvidia announced.
"The reason they did this is because of the November 5th election and because of the tariffs ," Trump said after the company's announcement.
Huang had said in March that Nvidia sees little short-term impact from higher US tariffs but will move production to the US in the long term, without giving a timeline.
The company recently said that TSMC has begun production of the latest generation of chips at its Arizona factory.
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