NVIDIA Bets Big on U.S. AI Infrastructure With $500B Manufacturing Push

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For the first time, NVIDIA will manufacture its AI supercomputers entirely in the U.S.—a major shift aimed at strengthening supply chain resilience amid surging demand and rising tariffs.

The chipmaker is partnering with TSMC, Foxconn, Wistron, Amkor, and SPIL to establish over one million square feet of production and testing space in Arizona and Texas. The facilities will produce NVIDIA’s Blackwell AI chips and the high-powered supercomputers that run AI data centers. Mass production is set to begin in the next 12–15 months.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said NVIDIA CEO Jensen Huang. “American manufacturing helps us better meet demand, strengthen our supply chain, and boost resiliency.”

Building America’s AI Factories

The scale is massive. NVIDIA plans to invest up to $500 billion over the next four years to develop U.S.-based AI infrastructure. The Blackwell chips are already in production at TSMC’s Phoenix facilities. Meanwhile, Foxconn is building out supercomputer capacity in Houston, and Wistron is doing the same in Dallas.

Packaging and testing for the chips will be handled by Amkor and SPIL in Arizona.

This move comes as AI demand skyrockets—and as new trade policies reshape global chip production. NVIDIA’s supercomputers are the backbone of so-called “AI factories”: specialized data centers built purely to process and generate artificial intelligence.

The company expects hundreds of thousands of jobs to be created and trillions in long-term economic security to follow from this domestic investment push.

Politics, Tariffs, and the “Trump Effect”

NVIDIA’s announcement follows increased pressure from the Trump administration to bring advanced chip production stateside. Earlier this year, Trump imposed steep new tariffs on Chinese imports, including semiconductors. While smartphones and laptops were temporarily exempt, Commerce Secretary Howard Lutnick confirmed those protections are short-term: “They’re included in the semiconductor tariffs, which are coming in probably a month or two.”

The White House praised NVIDIA’s move, calling it “the Trump Effect in action.” The administration has made U.S.-based semiconductor production a cornerstone of its economic strategy.

Trump’s $500 billion AI infrastructure initiative, announced with partners like OpenAI, Oracle, and SoftBank under a new entity called Stargate, is also centered in Texas. The initial $100 billion buildout is expected to scale dramatically in the coming years—setting the stage for an AI-fueled manufacturing race.

NVIDIA’s Future—and Investor Pressure

NVIDIA stock is down 18% year-to-date, and investors are watching closely to see if this U.S. expansion translates into long-term returns. Company leaders are betting that domestic production and tighter control over the supply chain will give NVIDIA a competitive edge in an increasingly volatile global market.

Using tools like NVIDIA Omniverse and Isaac GR00T, the company will deploy AI and robotics to help design and operate its new factories—creating digital twins of facilities and automating key parts of the manufacturing process.

With AI demand showing no signs of slowing—and geopolitical risks pushing companies to rethink where and how they build—NVIDIA’s $500 billion gamble may mark the start of a new chapter in American tech manufacturing.