Over a few years investment worth 500B
Nvidia is working with partners to manufacture AI supercomputers entirely in the U.S. Together with leading manufacturing partners, the company has commissioned more than a million square feet of manufacturing space: facilities in Arizona will build and test NVIDIA Blackwell chips, while those in Texas will assemble the AI supercomputers. Jensen Huang is bringing some jobs back.
The production of NVIDIA Blackwell chips has reportedly started at TSMC’s plant in Phoenix, Arizona. Concurrently, NVIDIA is establishing supercomputer manufacturing plants in Texas, partnering with Foxconn in Houston and with Wistron in Dallas.
Within the next four years, Nvidia plans to produce up to $500B dollars of AI infrastructure in the United States through partnerships with TSMC, Foxconn, Wistron, Amkor, and SPIL.
Mass production at both Texas plants is expected to ramp up within the next 12-15 months.
This announcement is likely related to factors such as tariffs. However, once customers become accustomed to paying high prices e.g. $30,000 for a single high-end Blackwell GPU, establishing manufacturing in the US may become more feasible, despite potentially higher operational costs.
Nevertheless, this strategy will likely result in lower margins for Nvidia and its partners. It should also be noted that the TSMC fab in Arizona is, according to Tech insights about 10 percent more expensive to operate than its counterparts in Taiwan.
