This announcement includes the production of Nvidia's Blackwell AI chips at TSMC’s Arizona factory, along with supercomputer manufacturing plants in Texas, expected to begin operation within 12 to 15 months.
This move follows the trend of U.S. tech companies, most of which rely on manufacturing in Taiwan, committing to bring production back to the U.S. in response to potential tariffs under the Trump administration.
D.A. Davidson analyst Gil Luria stated that Nvidia would not have moved production to the U.S. without the influence of the Trump administration. The $500 billion figure was also considered an exaggeration, similar to Apple’s recent promise of half a trillion dollars in U.S. investments.
Nvidia’s announcement came shortly after the U.S. exempted electronics like smartphones and chips from tariffs on Chinese imports, signaling a shift in the administration's approach, especially regarding the growing AI sector.
CEO Jensen Huang emphasized that manufacturing in the U.S. will help meet the rising demand for AI chips and supercomputers, improve supply chains, and create numerous jobs. President Trump attributed Nvidia’s move to the election and tariffs. Huang had previously indicated that Nvidia would gradually shift production to the U.S. without specifying a timeline.
Additionally, TSMC has begun production of Nvidia's new generation of chips at its Arizona facility.
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