Nvidia Launches ‘Made in USA’ AI Chip Production, Promises to Develop American Manufacturing

Nvidia has begun making Blackwell GPUs in the U.S. at TSMC’s Phoenix, Arizona fab. The company also announced that it is building accelerator and server joint ventures with Foxconn in Houston and Wistron in Dallas. Nvidia has contracts with Amkor and SPIL to package and test the chips. The company has already commissioned more than 93,000 square meters of AI chip manufacturing and testing space in Arizona and Texas as part of its efforts to shift some of its manufacturing to the U.S.

Image source: NVIDIA

Nvidia plans to begin mass production of accelerators and systems at factories in Houston and Dallas within the next 12 to 15 months. The company intends to invest up to half a trillion dollars in the U.S. in AI infrastructure facilities over the next four years.

«“The engines of the world’s AI infrastructure are built in the United States for the first time,” said Nvidia CEO Jensen Huang. “Adding U.S. manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and increases our resilience.”

The announcement comes just days after Nvidia struck a deal with the U.S. government to avoid export controls on its H20 chip. Nvidia’s most advanced chip can still be exported to China thanks to Huang’s pledge to fund U.S. AI data centers.

Many AI companies are currently trying to curry favor with the US administration. OpenAI has teamed up with SoftBank and Oracle to build a $500 billion data center in the US. Half of Microsoft’s planned $80 billion investment in AI data centers in fiscal year 2025 will be spent on construction in the US itself.

Nvidia says its U.S. chip manufacturing initiatives could create “hundreds of thousands of jobs and trillions of dollars in economic activity over the coming decades.” But programs to ramp up U.S. chip manufacturing face significant challenges. China’s retaliatory tariffs and trade restrictions threaten supplies of needed raw materials, there’s a skills shortage, and the Trump administration’s move to repeal the 2022 Chip Act could discourage future investors.