US to launch domestic production of Nvidia AI supercomputers

• Nvidia is leading U.S. efforts in AI hardware production, announcing plans to build AI supercomputers on American soil. The company is collaborating with manufacturers to construct factories in Arizona and Texas.
• The new operations will include additional sites in Houston and Dallas. It will create thousands of jobs and potentially generate up to $500 billion in value within four years. 
• This move is part of a broader push to meet growing demand for AI technology and strengthen the U.S. semiconductor supply chain.

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The United States is set to join the global race in artificial intelligence (AI) hardware production as Nvidia begins building AI supercomputers entirely on U.S. soil.

The company announced Monday, April 14, that it is partnering with manufacturers to build factories in Arizona and Texas. Nvidia will use more than one million square feet of space to produce advanced AI chips and systems.

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Nvidia plans domestic production of AI supercomputers

Production has already started at a facility in Phoenix owned by Taiwan Semiconductor Manufacturing Company (TSMC). It will serve as one of several U.S. sites. Nvidia says additional operations in Houston and Dallas are expected to begin within 15 months.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, Nvidia’s co-founder and CEO. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”

The White House published a blog post calling the announcement the “Trump Effect in action.” The administration says it is good for both the American economy and national security. 

Nvidia says it is deepening ties with manufacturing partners, including Foxconn, Wistron, Amkor and SPIL, all key players in building AI infrastructure. The company projects that within four years, U.S.-based AI operations could generate up to $500 billion in value, driven by new factories and support from global businesses. Nvidia said the new facilities are expected to create thousands of jobs.

Trump announces US AI investments

On March 3, President Donald Trump and TSMC CEO C.C. Wei announced plans to expand TSMC’s footprint in the U.S. Trump said his administration would invest $165 billion into the semiconductor sector. U.S. Commerce Secretary Howard Lutnick said TSMC’s move is intended in part to avoid tariffs. Five new factories are planned as part of the strategy.

A month later, Trump imposed reciprocal tariffs on several countries, including a 32% tariff on Taiwan and a 145% tariff on China. He later exempted certain tech products, like chips, phones and computers, from the tax.

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US push to join semiconductor industry

Reuters reports that on Sunday, April 13, Trump told reporters he planned to announce new tariffs targeting the semiconductor industry. Earlier that day, he posted on Truth Social that his administration, through the “National Security Tariff Investigations,” is examining the entire electronics supply chain. Trump emphasized the goal of bringing production to the U.S. instead of relying on other countries.

“We will not be held hostage by other countries, especially hostile trading nations like China, which will do everything within its power to disrespect the American people,” Trump wrote. “We also cannot let them continue to abuse us on trade, like they have for decades. Those days are over!”