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Nvidia starts manufacturing AI chips for the US in Texas

This is what happens when tariffs hit tech: Nvidia moves its most valuable assets straight into US factories.

byKerem Gülen
April 15, 2025
in Artificial Intelligence, News

Nvidia announced it has started manufacturing chips in Arizona and plans to build AI supercomputers in Texas, marking a significant shift in its supply chain strategy amid rising trade uncertainties. The company’s move brings production of key components for generative AI closer to home as tariffs threaten the cost of overseas manufacturing.

With new tariffs introduced by former President Trump creating instability in tech supply chains, Nvidia is making a strategic play to localize critical parts of its AI infrastructure. Although some tariffs were temporarily rolled back following stock market turbulence, Trump signaled further changes may be on the horizon, including a possible reevaluation of semiconductor and electronics tariffs.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Nvidia CEO Jensen Huang. “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.”

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Where Nvidia is building

The company confirmed its advanced Blackwell chips are already being produced at Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Phoenix, Arizona. It also plans to build AI-focused supercomputers in two major Texas cities: Houston, through a partnership with Foxconn, and Dallas, in collaboration with Wistron. Manufacturing at these sites is expected to ramp up over the next year.

These supercomputers will be deployed in data centers that power large-scale AI applications—part of the booming generative AI infrastructure that underpins tools like ChatGPT, AI-powered office software, and intelligent consumer devices.

Nvidia’s announcement is the latest sign that the US government’s semiconductor incentives are reshaping manufacturing decisions. The CHIPS Act, signed into law by President Biden in 2022, allocated $53 billion to bring chip production back to US soil. Nvidia’s US-based efforts add to a growing list of companies shifting critical operations stateside, aligning with national goals of supply chain resilience and technological independence.

While consumers aren’t directly purchasing AI chips, the location and cost of chip production impact the prices of devices and services built on that technology.


Featured image credit

Tags: AIchipNvidia

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