Nvidia plans to invest hundreds of billions in U.S. chip production
Nvidia CEO announces plan for onshore chip production in the U.S.
Nvidia Corp. is preparing to invest several hundred billion dollars over the next four years in procuring US-made chips and electronics, signaling a significant shift in the company's supply chain strategy.
Chief Executive Officer Jensen Huang confirmed in an interview with the Financial Times that Nvidia’s latest chips and AI-powered data center servers can now be manufactured domestically, reports The Financial Times.
These advancements are made possible by partnerships with Taiwan Semiconductor Manufacturing Co. (TSMC) and Foxconn Technology Group, both of which are expanding their production capabilities within the United States.
GTC Conference Highlights and US Manufacturing Expansion
The announcement comes during Nvidia’s GTC developer conference, where Huang emphasized the company’s long-term goal of shifting more of its manufacturing onshore. Currently, Nvidia is utilizing TSMC’s Arizona facility to produce some of its most advanced graphics processing units (GPUs), which play a crucial role in the artificial intelligence boom.
The decision to increase domestic production is seen as a critical move for strengthening supply chain resilience and reducing dependence on overseas semiconductor manufacturing.
Market Reactions and Supplier Gains
The news of Nvidia’s US investment plans has positively impacted its key suppliers. Following the announcement, shares of TSMC and South Korean semiconductor giant SK Hynix Inc. saw an uptick.
According to Nvidia’s 2024 annual report, the company had $20 billion in total future purchase commitments as of January 28, 2024. With its commitment to investing at an unprecedented scale, Nvidia is poised to further influence the global semiconductor market and reinforce the United States as a major hub for AI chip manufacturing.
Huang, who met with President Donald Trump in January, expressed optimism about the US government's support for AI development, calling it a “phenomenal result for AI in the US.” He also praised TSMC for expanding its investment in the country, a move that aligns with the current administration’s push to strengthen domestic semiconductor production.
TSMC, Taiwan’s most valuable company, is accelerating its US expansion plans amid geopolitical uncertainties and trade tensions. TSMC CEO C.C. Wei recently announced a $100 billion investment in the US, standing alongside Trump at the White House.
Additionally, Foxconn, a key Apple supplier, is collaborating with Apple to establish an AI server assembly plant in Texas. These developments highlight the ongoing transformation of the global semiconductor supply chain, with the US emerging as a key center for AI chip production.
Recently we wrote, that at the highly anticipated GPU Technology Conference in San Jose, Nvidia CEO Jensen Huang unveiled the company’s next-generation AI chips, including the Blackwell Ultra, which is slated for a second-half 2025 release.
