Nvidia (NVDA) on Monday said that it will produce up to $500 billion of AI infrastructure in the US within the next four years as the tech industry looks to bolster its domestic manufacturing footprint in the face of Trump’s approach to trade policy and desire to onshore more US heavy industry.
As part of this $500 billion commitment, Nvidia said it is building two new supercomputer manufacturing plants in Texas in partnership with contract manufacturers Foxconn (2354.TW) and Wistron (3231.TW).
Nvidia expects to mass produce supercomputers at those sites in 12 to 15 months. The chipmaker said its latest Blackwell AI chips are already in production at TSMC’s (TSM) plant in Phoenix, Arizona.
As of 10:53:13 AM EDT. Market Open.
Nvidia declined to answer questions about which of its products will be built at the supercomputer factories in Texas.
The chipmaker’s announcement follows commitments from Big Tech firms to bring manufacturing to the US as the Trump administration pursues aggressive tariffs that could have massive cost implications for global tech supply chains.
Since Trump took office, Apple (AAPL) has committed to investing $500 billion in the US over the next four years, while contract chip manufacturer TSMC has committed to spending $100 billion over a similar time frame.
Microsoft (MSFT) said it would spend $80 billion in 2025 with half of this investment focused on the US, while Meta (META) has said the company will spend up to $65 billion in 2025 with a chunk of that cash going toward building a massive data center in Louisiana roughly the size of Manhattan.
Nvidia CEO Jensen Huang said in the company’s announcement Monday, “The engines of the world’s AI infrastructure are being built in the United States for the first time.”
The executive had hinted that Nvidia would increase its US manufacturing capacity in near future during the company’s annual GTC conference as it looks to avoid tariffs.
“We’re preparing and we have been preparing to manufacture onshore,” Huang told analysts in a call during the company’s annual conference on March 19.
Trump said on Sunday that he plans to announce a tariff on semiconductor imports “and numerous other things” this week. His commentary came shortly after the administration over the weekend issued reciprocal tariff exemptions for key technology imports such as GPUs and AI servers.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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