NVIDIA to Build AI Supercomputers in U.S. with $500 Billion Investment, Partners with TSMC and Foxconn

San Jose, CA – April 14, 2025 – NVIDIA, a global leader in AI chipmaking, announced today a groundbreaking initiative to manufacture its advanced AI supercomputers in the United States for the first time, marking a significant shift toward domestic production. The company plans to invest up to $500 billion in AI infrastructure over the next four years, partnering with industry giants Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn to bolster the U.S. supply chain. This move includes the start of production for NVIDIA’s cutting-edge Blackwell chips at TSMC’s facility in Phoenix, Arizona.

The announcement, made by NVIDIA CEO Jensen Huang, comes amid growing efforts to reduce reliance on overseas manufacturing due to geopolitical tensions and potential tariff policies under the Trump administration. “The engines of the world’s AI infrastructure are being built in the United States for the first time,” Huang said in a statement. “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.”

NVIDIA’s Blackwell chips, designed for advanced AI processing, have already begun production at TSMC’s Arizona plant, with mass production expected to ramp up within the next 12 to 15 months. The company is also collaborating with Foxconn in Houston and Wistron in Dallas to build supercomputer manufacturing plants in Texas. Additionally, NVIDIA has partnered with Amkor and SPIL for packaging and testing operations in Arizona, addressing the complex demands of AI chip production.

The $500 billion investment aligns with broader industry trends, as tech giants like Apple and AMD also commit to U.S.-based manufacturing. TSMC, a key player in NVIDIA’s plans, has pledged $165 billion to expand its Arizona operations, including three new fabrication plants and advanced packaging facilities, supported by significant U.S. government subsidies under the CHIPS Act. However, challenges remain, as the Arizona facility lacks the chip-on-wafer-on-substrate (CoWoS) capacity required for Blackwell chips, meaning some packaging processes will still occur in Taiwan.

Huang emphasized the strategic importance of diversifying production, citing risks like trade wars and natural disasters in Asia. “Having the support of an administration that cares about the success of this industry and ensures energy isn’t an obstacle is a phenomenal result for AI in the U.S.,” he told the Financial Times.

This initiative positions NVIDIA at the forefront of the AI infrastructure boom, with the Blackwell platform—boasting 208 billion transistors and 30 times faster AI task performance—driving demand from tech giants like Google, Meta, and OpenAI. As the U.S. aims to reclaim leadership in semiconductor manufacturing, NVIDIA’s bold plan signals a transformative era for the industry, though analysts caution that building a fully domestic supply chain will take years to achieve. 17GEN4.com