Nvidia unveiled plans for a massive investment in its U.S.-based manufacturing Monday as the ripple effects of President Donald Trump’s tariff gambit, as well as China’s retaliation toward the tech sector, continue to reverberate.
The Santa Clara, Calif., AI-chip giant said it planned to produce an American-made supercomputer from a U.S. platform, and planned to produce as much as $500 billion in artificial-intelligence infrastructure over the next four years as part of a partnership with Foxconn (FXCOF) and Taiwan Semiconductor. (TSM)
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The plants are expected to be built in Arizona, to test Nvidia Blackwell chips, and in Texas, to test AI supercomputers.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Chief Executive 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 has found itself in the crosshairs of the accelerating trade war between Washington and Beijing, with Trump planning tariffs on the tech sector that will sit alongside his recently reduced 20% levy on China-made goods.
Related: Apple, Nvidia lead tech tumble as China retaliates on U.S. tariffs
Late last month, London’s Financial Times reported that Beijing was looking to curb some of Nvidia’s exports on the basis of new environmental restrictions.
In January China’s State Administration for Market Regulation launched an investigation into Nvidia tied to allegations it had breached anti-monopoly laws with its $6.9 billion purchase of Mellanox Technologies in early 2020.
Nvidia generated around $5.4 billion in China-based revenue for its fiscal third quarter ended in October, with another $5.15 billion coming from clients and customers in Taiwan. Collectively, the two accounted for some 30% of the group’s overall tally of $35.1 billion.
Nvidia shares were marked 3.9% higher in premarket trading immediately following the investment announcement to indicate an opening bell price of $115.27.
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