Nvidia announced on Monday that it has secured over a million square feet of manufacturing space in Arizona and Texas for the production and testing of AI chips, as part of its initiative to shift some of its manufacturing operations to the United States.
The company stated that it has commenced production of its Blackwell chips at TSMC’s facilities in Phoenix, Arizona, and is also establishing “supercomputer” manufacturing sites in Texas in collaboration with Foxconn in Houston and Wistron in Dallas. In Arizona, Nvidia is partnering with Amkor and SPIL for packaging and testing services.
The mass production at the plants in Houston and Dallas is anticipated to increase over the next 12-15 months, with the goal of producing up to half a trillion dollars worth of AI infrastructure in the U.S. within the next four years.
Nvidia’s CEO, Jensen Huang, remarked, “For the first time, the foundations of the world’s AI infrastructure are being established in the United States. Expanding American manufacturing allows us to better satisfy the incredible and increasing demand for AI chips and supercomputers, enhances our supply chain, and improves our overall resilience.”
This announcement follows reports that Nvidia narrowly dodged export controls on its H20 chip by securing a domestic manufacturing agreement with the Trump administration. As per NPR, Huang’s commitment to invest in U.S.-based AI data center components led to the H20, Nvidia’s most advanced chip eligible for export to China, being spared from restrictions.
In recent months, several AI firms have embraced Trump’s “America-first” policy to gain favor with the administration. OpenAI partnered with SoftBank and Oracle for a $500 billion initiative aimed at establishing U.S. data centers, known as the Stargate Project, while Microsoft allocated $80 billion for AI data centers in its 2025 fiscal year, with half of that budget designated for U.S. projects.
Trump has exerted pressure on certain partners to achieve his objectives; he allegedly informed TSMC that it would face taxes of up to 100% if it did not construct new chip manufacturing facilities in the U.S.
Nvidia asserted that its domestic chip manufacturing efforts could generate “hundreds of thousands” of jobs and create “trillions of dollars” in economic activity over the decades ahead. However, initiatives aimed at boosting the domestic chipmaking industry encounter significant and increasing obstacles.
Retaliatory tariffs and trade barriers from China pose a threat to the supply of essential raw materials needed for chip production in the U.S., and there is a critical shortage of skilled workers available for chip assembly. Additionally, the Trump administration’s efforts to undermine the Chips Act, a 2022 legislation designed to provide billions in grants to semiconductor manufacturers, may discourage future investments from industry leaders.
