Nvidia to build AI supercomputers on American soil

2025-04-14 nvidia

Santa Clara, Monday, 14 April 2025.
In a historic move, Nvidia will manufacture its AI supercomputers in the US for the first time. Partnering with major manufacturers, Nvidia plans to construct factories spanning over 90,000 square meters in Arizona and Texas. This initiative aims to produce up to $500 billion in AI infrastructure within the next four years, creating thousands of jobs and boosting economic security. The Blackwell chips are already in production in TSMC’s Arizona plant.

Manufacturing partnerships

Nvidia is collaborating with TSMC, Foxconn, Wistron, Amkor, and SPIL [1]. These partnerships aim to create a comprehensive production ecosystem within the US [1]. The Blackwell chips have already commenced production at TSMC’s facilities in Phoenix, Arizona [1][2][3]. Supercomputer manufacturing plants are under construction in Texas, with Foxconn in Houston and Wistron in Dallas [1][2][3]. Mass production at these plants is anticipated to begin within the next 12 to 15 months [1][2][3]. Amkor and SPIL will handle packaging and testing operations in Arizona [1][3].

Strategic motivations

Jensen Huang, Nvidia’s CEO, emphasized that domestic manufacturing will enable the company to better address the increasing demand for AI chips and supercomputers [1][4]. Huang also stated it will strengthen the supply chain and improve resilience [1][4]. This move could be seen as a response to potential tariffs from the US government, as indicated by concerns raised by analysts [2][8]. Nvidia’s investment in US-based AI infrastructure may also be a strategic move to ease restrictions on exporting advanced chips to China [8].

Market and stock impact

News of Nvidia’s US manufacturing plans initially caused the stock to rise by 3% before settling to flat [5]. Some analysts suggest the move to domestic production could introduce complexities [8]. Wedbush Securities analyst Dan Ives noted the White House’s mixed messages have created uncertainty for companies planning their supply chains [8]. Concerns exist that manufacturing in the US could lead to increased costs and decreased profit margins compared to established Asian supply chains [8]. Investors will be closely watching Nvidia’s financial reports for the impact of US manufacturing on the company’s profitability [8].

Economic and technological implications

Nvidia anticipates the creation of numerous ‘gigawatt AI factories’ in the coming years [1][3]. Manufacturing AI chips and supercomputers in the US is expected to generate hundreds of thousands of jobs and contribute trillions of dollars to economic security over the coming decades [1][3]. Nvidia plans to utilize its AI, robotics, and digital twin technologies, including NVIDIA Omniverse and NVIDIA Isaac GR00T, to design and operate the new facilities [1]. The company describes its AI supercomputers as the core of a new type of data center designed specifically for AI processing [1][5].

Bronnen

AI Supercomputers US Manufacturing