Against the backdrop of President Trump pushing hard for domestic manufacturing, Nvidia announced plans to produce AI infrastructure with partners including TSMC valued at $500 billion in Arizona and Texas.
Apple earlier this year announced a new $500 billion US investment. Both Apple and Nvidia have depended heavily on China for parts and assembly of their products and Trump has pushed especially hard with China tariffs, recently at 145%, and said the China tariffs were a reason Apple made its investment move.
Nvidia announced in a blog early Monday it has already commissioned more than a million square feet of manufacturing space to build and test Nvidia Blackwell chips in Arizona and AI supercomputers in Texas. Nvidia Blackwell chips have already started production at TSMC’s chip plants in Phoenix. Nvidia is building supercomputer manufacturing plants in Texas with Foxconn in Houston and with Wistron in Dallas. Mass production at those plants will ramp up in 12 to 15 months.
The $500 billion in infrastructure that Nvidia will produce comes in partnership with TSMC, Foxconn, Wistron, Amkor and SPIL. TSMC earlier this year committed to spending $165 billion in US manufacturing of its advanced chips and it is not clear if how much of its earlier commitments are aligned with Nvidia’s latest announcement and what Nvidia’s investment total will be, as opposed to its role as a producer with the partners.
Nvidia AI supercomputers are the engines of new types of data centers, Nvidia explained at GTC and those will be used for processing AI. The company has forecast tens of gigawatt AI factories will be built in coming years, creating new jobs and adding economic security. Nvidia will use advanced AI, robotics and digital twins to design and operate the facilities, including products such as Nvidia Omniverse to create ditial twins of factories and Nvidia Isaac GROOT to build robots to automate manufacturing.
“Engines of the world’s AI infrastructure are being built ion the US for the first time,” CEO Jensen Huang said in a statement. “Adding American manufacturing helps us better meet the incrediible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”
The White House issued a statement that said of the Nvidia sponsorship: "It's the Trump Effect in action."
It continues: "President Donald J. Trump has made US-based chips manufacturing a priority as part of 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."
Thebillion statement tallied the $5 bi00llion investment by Apple and mentioned $100 billion by TSMC (on top of $65 billion previously committed). It included $500 billion of private investment in AI infrastructure by Softbank, OpenAI and Oracle.
"Onshoring these industries is good for the American worker, good for the American economy, and good for American national security--and the best is yet to come."
Nvidia declined to comment on Trump's role in AI infrastructure investment and sponsorship.