Nvidia has announced that it will begin manufacturing some of its most advanced AI chips in the United States.
According to Nvidia, it has secured more than one million square feet of manufacturing space across Arizona and Texas.
The goal is clear: strengthen supply chains, meet rising demand, and increase resilience.
Chip Production Begins in Arizona and Texas
Nvidia’s production of its Blackwell chips (designed to power the next generation of AI systems) is already underway at TSMC’s facility in Phoenix, Arizona.
In Texas, the company is building supercomputer-focused manufacturing plants. It is working with Foxconn in Houston and Wistron in Dallas.
These sites will serve as key locations for producing AI infrastructure. Additionally, Nvidia is partnering with Amkor and SPIL for chip packaging and testing in Arizona.
These collaborations will help streamline the company’s operations in the U.S.
Mass Production Timeline and Economic Impact
Mass production is expected to scale within 12 to 15 months. Over the next four years, Nvidia aims to produce up to $500 billion worth of AI infrastructure in the United States.
This initiative could create hundreds of thousands of jobs. It may also generate trillions of dollars in long-term economic activity.
Nvidia’s CEO Jensen Huang said this effort marks the first time the “engines of the world’s AI infrastructure” are being built on American soil.
A Strategic Response to Political Pressure
This announcement follows recent developments tied to U.S. trade policy. According to reports, Nvidia narrowly avoided export restrictions on its H20 chip.
This chip remains the company’s most advanced model still eligible for export to China.
Nvidia’s commitment to build more AI hardware in the U.S. reportedly helped the company secure continued access to global markets.
The Trump administration has pushed for domestic chipmaking, threatening high tariffs for companies that rely on foreign production.
Other Tech Companies Are Following Suit
Nvidia is not alone. OpenAI, backed by SoftBank and Oracle, announced a $500 billion U.S. data center project called the Stargate Project.
Microsoft pledged $80 billion for AI data centers in 2025, with half of that investment focused on U.S. infrastructure.
These moves align with the federal government’s America-first approach to artificial intelligence. Companies are taking proactive steps to show their support and avoid policy setbacks.
Also read: Nvidia Surpasses Apple to Become World’s Largest Company
Major Obstacles Remain
Despite the excitement, there are challenges: supply chain issues could delay progress, and trade tensions with China threaten access to raw materials.
Skilled labor is also in short supply; chip assembly and testing require trained technicians, and the talent pool in the U.S. remains limited.
Additionally, political uncertainty clouds the future of U.S. chip policy. The Chips Act, passed in 2022, aimed to offer grants to support semiconductor development.
However, recent efforts to weaken this law may discourage future investment.
