Nvidia to manufacture Blackwell chips, supercomputers in US amid tariff pressures

Nvidia to manufacture Blackwell chips, supercomputers in US amid tariff pressures

Nvidia building sign in Santa Clara, California

Nvidia has pledged to manufacture its AI supercomputing solutions in the US after President Trump’s currently suspended tariffs continue to force firms into supply chain rethinks.

The semiconductor giant announced that it is collaborating with its manufacturing partners to design and construct factories in the US for manufacturing and testing its hardware.

Over a million square feet of manufacturing space has already been secured for the production and testing of its Blackwell chips in Arizona and AI supercomputers in Texas.

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

“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.”

Taiwan, the home of Nvidia’s key manufacturing partner TSMC, was hit with a 32% reciprocal tariff, though semiconductors are currently exempt — despite Trump earlier threatening to hit the market with levies potentially as high as 100%.

TSMC has since moved to expand its production presence in the US to get around the tariff disruption, pledging $100 billion to launch new fabrication plants.

Nvidia is now following suit, with production on its next-gen Blackwell chips already underway at TSMC’s chip plants in Phoenix, Arizona.

The tech giant is also looking to manufacture its supercomputing solutions in partnership with Foxconn in Houston and with Wistron in Dallas.

Nvidia is building out its supercomputing solutions, including the new HGX B300 NVL16 high-performance server-class unit and personal AI supercomputers like DGX Spark and DGX Station, which are designed to bring “data centre-level performance to desktops”.

Mass production of supercomputing units at both plants is expected to ramp up in the next 12-15 months.

Amkor and SPIL have also been enlisted to help with packaging and testing operations at sites in Arizona.

In total, the chipmaking giant said it plans to produce up to half a trillion dollars of AI infrastructure in the US within the next four years.

Nvidia's announcement was praised by the White House, which stated, “It's the Trump Effect in action”.

“President Donald J. Trump has made US-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing renaissance, and it’s paying off — with trillions of dollars in new investments secured in the tech sector alone,” a White House statement reads.

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