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Nvidia GTC Huang
CEO Jensen Huang talks during the keynote address of Nvidia GTC Tuesday, March 18, 2025, in San Jose, Calif. (AP Photo/Nic Coury)
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Nvidia plans to manufacture AI chips in U.S. for first time

17 Comments
By SARAH PARVINI

Nvidia announced Monday that it will produce its artificial intelligence super computers in the United States for the first time.

The tech giant said it has commissioned more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas — part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia founder Jensen 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 announcement comes as the Trump administration has said that tariff exemptions on electronics like smartphones and laptops are only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry.

White House officials, including President Donald Trump himself, spent Sunday downplaying the significance of exemptions that lessen but won’t eliminate the effect of U.S. tariffs on imports of popular consumer devices and their key components.

“They’re exempt from the reciprocal tariffs but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” U.S. Commerce Secretary Howard Lutnick told ABC’s “This Week” on Sunday.

Nvidia said in a post on its website that it has started Blackwell production at Taiwan Semiconductor Manufacturing Co. chip plants in Phoenix. The Santa Clara, California-based chip company is also building supercomputer manufacturing plants in Texas — with Foxconn in Houston and Wistron in Dallas.

Nvidia's AI super computers will serve as the engines for AI factories, “a new type of data center created for the sole purpose of processing artificial intelligence,” the company said, adding that manufacturing in the U.S. will create “hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades."

Mass production at both plants is expected to ramp up in the next 12-15 months, Nvidia said. The company also plans on partnering with Taiwan-based company SPIL and Amkor for “packaging and testing operations” in Arizona.

In a statement Monday, the White House called Nvidia’s move “the Trump Effect in action.”

Trump “has made U.S.-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,” the White House said.

Earlier this year, Trump announced a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, was tasked with building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House.

The initial investment is expected to be $100 billion and could reach five times that sum.

© Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

©2025 GPlusMedia Inc.

17 Comments
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More good news for US manufacturing and tech sectors. DJT delivers!

-5 ( +0 / -5 )

Nvidia plans to manufacture AI chips in U.S. for first time

Back to the USA. Let's make America Great Again

-5 ( +0 / -5 )

Modern production lines use more robots and AI and need fewer workers. Robots don't pay taxes or spend money in the economy.

Nvidia employs approximately 16,568 employees in the United States. This represents a significant portion of the company's total global workforce of around 36,000. 

For the fiscal year 2022, Nvidia's effective tax rate was 1.9%, with $189 million in income tax expense. In 2021, the rate was 1.7%, with $77 million in income tax expense, and in 2020 it was 5.9%, with $174 million in income tax expense. 

NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter and up 78% from ...

3 ( +3 / -0 )

More great news, DJT will provide some degree of current NVDA tariff waivers and exemptions contingent upon their timely re-shoring to the US.

Above will accomplish DJT's policy goal of re-shoring for national security, jobs, wealth creation, etc. while not disrupting NVDA, the industry or the economy. DJT will do same across industries, carrot and stick to re-shoring

Companies failing to re-shoring in timely manner, will be subject to retroactive $tariffs, penalties and interest

-4 ( +0 / -4 )

How do Americans benefit? NVIDIA profits $40 billion. Taxes paid $174 billion. 17,000 American workers.

0 ( +0 / -0 )

Main reason manufacturing moved to China is efficient skilled labor. To sustain production in USA and compete with China skill and efficiency will be the key. Let's see how it goes in next 5 to 10 years.

1 ( +1 / -0 )

Nvidia gets it, too risky to depend solely on TSMS and China, plus capture 15% Corp Tax Rate, Immediate CAPEX expensing, lower energy and shipping costs, diversification, better regulatory and legal framework, while building important GOODWILL within US!

DJT = Re-industrializing US as Voters GET IT, Fed Up with Globalist Outsourcers, Wall Street and their China CCP $Partners Cancer, destroying the US from within

-3 ( +0 / -3 )

Below is from Nvidia, that's LOTS of $, but more important, National Security, not allowing CCP in alliance with Globalist Outsourcers and Wall Street to destroy US.

Nvidia's AI super computers will serve as the engines for AI factories, “a new type of data center created for the sole purpose of processing artificial intelligence,” the company said, adding that manufacturing in the U.S. will create “hundreds of thousands of jobs and drive trillions of $dollars in economic security over the coming decades."

-3 ( +0 / -3 )

It's not just Nvidia, it's all major tech. companies and all other industries. As reshoring and US re-industrialization happening, as world cannot allow China to dominate manufacturing, thus future of technology & global economy

-3 ( +0 / -3 )

Manufacturing in the US?

thought that “can’t be done”?

-3 ( +0 / -3 )

Plans to! Key words. How about that huge Foxconn site that was planned for Wisconsin? Never happened, just like this won't either. they know all they have to do is say it and Don will be happy and they continue making the chips where its cheaper and better quality!

0 ( +0 / -0 )

Ban AI.

Where are the environmental concerns from government and concerned eco warriors?

No concerns about global warming now then?

-3 ( +0 / -3 )

Plans to! Key words. How about that huge Foxconn site that was planned for Wisconsin? Never happened, just like this won't either. they know all they have to do is say it and Don will be happy and they continue making the chips where its cheaper and better quality!

Xactly. Know how long it takes to build such facilities? Long after DJT succumbs to his super-size me diet.

DJT delivers!

Recession, depression, stagflation. Haven't been paying attention to the stock market, have you. Or economists' warnings.

2 ( +2 / -0 )

DJT = Re-industrializing US as Voters GET IT, Fed Up with Globalist Outsourcers, Wall Street and their China CCP $Partners Cancer, destroying the US from within

Sorry, mate, but that ship sailed long before you were born.

4 ( +4 / -0 )

Know how long it takes to build such facilities? 

good thing that the factory already exists.

and AMD just announced they will manufacture chips in the USA too.

-4 ( +0 / -4 )

How do Americans benefit? NVIDIA profits $40 billion. Taxes paid $174 billion. 17,000 American workers.

Is that how it pans out? This is a site putatively about Japan, so bless us with your wisdom re how this benefits me.

-2 ( +0 / -2 )

It’s interesting that the right seems to only care about manufacturing jobs and ignores the value added services that US companies provide. Exported services like google etc. have a far greater ability to provide benefit to the US than trying to restructure debt and the economy to encourage manufacturers to return, even without the immense uncertainty created by Trump’s insane flip flopping tariffs ‘policy’. Even if the US somehow managed to eliminate the debt and channel spending towards manufacturing, it would only lift manufacturing to about 15% of GDP- far below the 30% seen in the ‘50s. The US should look towards future control of AI and emerging payment mechanisms that China is currently ahead in and that will control the world economy. Manufacturing is not coming back for the US- it’s a boomer fantasy. Are Americans willing to work for a couple of dollars a day? US can not compete.

0 ( +0 / -0 )

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