Nvidia Plans $500B AI Server Production In US
Nvidia has unveiled a plan to develop artificial intelligence servers valued at up to $500 billion across the United States over the next four years. This ambitious initiative, supported by key partners like TSMC, Foxconn, and Wistron, aligns with growing governmental pressure to strengthen local manufacturing. Production will include the company’s Blackwell AI chips, which are set to be manufactured at TSMC’s Arizona facility. Meanwhile, Foxconn and Wistron will construct supercomputers in Texas, with production expected to scale within 12 to 15 months.
The move marks a significant shift for Nvidia, whose chips are currently produced primarily in Taiwan. By transitioning some operations to the U.S., the company joins other tech giants, such as Apple, in responding to the Trump administration’s emphasis on domestic production. Apple, for instance, recently pledged a similar $500 billion investment in the U.S., which includes plans for an AI server factory in Texas.
Policy Pressure and Strategic Realignment
Analysts suggest that Nvidia’s decision stems largely from political pressure. According to Gil Luria of D.A. Davidson, the company likely wouldn’t have considered U.S.-based manufacturing without the influence of current administration policies. Indeed, the announcement coincides with Washington’s recent tariff exemptions for certain electronics, including chips and smartphones. However, the administration has also signalled that new tariff rates on imported chips will be disclosed soon.
The timing suggests a broader political motive. Former President Trump directly linked Nvidia’s decision to the upcoming November election and the tariff policy in a recent White House briefing. Despite this, Nvidia CEO Jensen Huang emphasized the strategic business benefits of local production. He stated that U.S.-based manufacturing would enhance supply chain resilience and help meet rising global demand for AI technology.
Looking Ahead
Nvidia believes its domestic operations could generate hundreds of thousands of jobs over the coming decades. While the immediate impact of increased tariffs on the company is minimal, Huang previously acknowledged that production could shift toward the U.S. in the long term. Ultimately, the company’s announcement not only reflects changing economic dynamics but also underscores the intersection of technology, policy, and global competition in the AI era.
