NVIDIA Shifts AI Chip and Supercomputer Production to the US Amid Trade Uncertainties

NVIDIA announces plans to manufacture its AI chips and supercomputers in the US, partnering with TSMC in Arizona and Foxconn in Texas, to navigate the complexities of global trade tariffs.

In what appears to be a strategic move to sidestep the turbulent waters of international trade tariffs, NVIDIA has decided to bring some of its AI chip and supercomputer manufacturing back to American soil. This decision, reminiscent of a student choosing the safer path after considering the consequences of a risky venture, underscores the company’s commitment to ensuring its products remain competitive and accessible. NVIDIA has revealed that its Blackwell chips will be built and tested in Arizona, while its AI supercomputers, likely including the DGX Spark and DGX Station, will be produced in Texas.

Collaborating with TSMC in Phoenix for chip manufacturing and partnering with Amkor and SPIL for testing and packaging, NVIDIA is laying down roots for a more resilient supply chain. Meanwhile, in Texas, Foxconn in Houston and Wistron in Dallas will take on the production of NVIDIA’s supercomputers, with mass production expected to ramp up within the next 12 to 15 months. This move not only reflects NVIDIA’s adaptability but also its foresight in aligning with the CHIPS Act’s objectives, which has bolstered TSMC’s US operations with significant funding.

As the AI boom continues to benefit NVIDIA, the company’s decision to localize production serves as a lesson in navigating geopolitical and economic challenges. By investing in US manufacturing, NVIDIA is not just avoiding the immediate pitfalls of trade tariffs but is also contributing to the broader goal of technological sovereignty and job creation. It’s a testament to the adage that sometimes, the best way forward is to come back home.