NVIDIA to Shift AI Chip Manufacturing to the U.S. in $500B Initiative Backed by TSMC and Foxconn

NVIDIA announced plans to build AI infrastructure worth up to $500 billion in the United States over the next four years, partnering with firms including TSMC, Foxconn, and Wistron. The move marks a significant shift in the company’s manufacturing strategy as geopolitical and economic pressures reshape global supply chains.

The initiative includes production of NVIDIA’s latest Blackwell AI chips at TSMC’s new facility in Phoenix, Arizona, and the construction of supercomputer assembly plants in Texas. These are expected to become operational within 12 to 15 months.

NVIDIA CEO Jensen Huang said the shift would “help us better meet the incredible and growing demand for AI chips and supercomputers, strengthen our supply chain and boost our resiliency.”

While critics called the $500 billion figure inflated, NVIDIA’s manufacturing pivot aligns it with other tech giants responding to rising U.S. tariffs and the administration’s push to repatriate advanced chip production. TSMC has already begun producing NVIDIA’s new chips in Arizona, the company confirmed.

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