Nvidia to Manufacture AI Supercomputers in US

Nividia said it will partner with TSMC and other firms to spend up to $500 billion in the United States to build supercomputer manufacturing plants.

Nvidia CEO Jensen Huang delivers his keystone speech ahead of Computex 2024 in Taipei, Taiwan, on June 2, 2024. Sam Yeh/AFP via Getty Images

Nvidia Corp. is beginning to produce chips in the United States and will soon build multiple “supercomputer manufacturing plants.”

On April 14, the California-based technology giant announced its intent to “design and build factories that ... will produce Nvidia AI supercomputers entirely in the U.S.” The company said it would partner with other tech firms to spend as much as $500 billion on what it called artificial intelligence (AI) infrastructure within the next four years.

Nvidia CEO Jensen Huang said in a statement published on April 14 that the facilities will serve as the “engines of the world’s AI infrastructure.”

“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,” Huang said.

Nvidia’s announcement came less than a month after Huang told the international media that Nvidia was considering spending hundreds of billions of dollars on expanding its manufacturing capacity in the United States.

In addition, the international technology industry remains in a reactive posture as the United States has rolled out a series of tariffs targeting imports to the United States from around the world. Financial markets and foreign capitals were in upheaval in early April as President Donald Trump announced and swiftly dialed back what he called reciprocal tariffs against most of the United States’ largest trading partners.

On April 14, Trump told reporters in the Oval Office that Nvidia “wouldn’t be doing it” without tariffs.

As of the morning of April 14, the United States is imposing a 145 percent tariff on goods imported from China, which is a key link in the supply chain for the world’s largest computer and smartphone makers.

However, on April 11, U.S. officials said there would be a temporary exemption on electronics imports, including laptops and smartphones, until the White House decides on a new tariff approach to the semiconductor industry. But on April 13, Trump said on his social media account that there was “no tariff ‘exemption’ announced on Friday.” Later on April 13, Trump told reporters there would be additional updates about this developing situation on April 14.

Nvidia, according to its statement, will partner with a number of technology firms, including Taiwanese firms Foxconn Technology Co. Ltd., Siliconware Precision Industries Co. Ltd., Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), and Wistron Corp. to build and test both chips and supercomputers in separate facilities located in Arizona and Texas. U.S. company Amkor Technology Inc. is also involved in the deal.

Nvidia’s Blackwell chips, a component used in generative AI computing, are already being manufactured at TSMC’s chip plants in Phoenix, a statement said. With Foxconn and Wistron, Nvidia plans to build “supercomputer manufacturing plants” in both Houston and Dallas.

“Mass production at both plants is expected to ramp up in the next 12–15 months,” the statement said.