Nvidia To Bring Supercomputer Manufacturing To The U.S. As Tariffs Create Pressure

As part of a plan to produce as much as a half-trillion dollars of artificial intelligence infrastructure in the U.S. over the next four years, Nvidia has set off to build more than 1M SF of factories.

In partnership with Foxconn and Wistron Corp., the technology giant is building production plants in Houston and Dallas, respectively, it said in an announcement Monday. The facilities would allow the company to produce its AI supercomputers entirely in the U.S. Mass production is expected to ramp up in the coming 12 to 15 months. 

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia founder and CEO 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 Blackwell chips, which are designed for generative AI, have already started production at Taiwan Semiconductor Manufacturing Co.'s factory in Phoenix. The company is also working with Amkor Technology and Siliconware Precision Industries Co. to package and test its products in the state.

The announcement comes as President Donald Trump’s tariffs set in. Under the new policies, a 145% tax has been levied on China, where many electronics are produced. 

Friday, the White House released a list of products, including a variety of foundational technology used in smartphones and computers, that would be exempted from those tariffs. However, on Sunday, the President made clear that those exclusions would be temporary. 

“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump wrote in a Truth Social post. “There was no Tariff ‘exception’ announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’”

Last week, Trump also announced a 90-day pause on reciprocal tariffs.

Those changes could help companies in the short term as they attempt to onshore operations, but experts say it is not nearly enough time to break ground on multibillion-dollar facilities, nor does it provide a stable environment to do so.

Much of Nvidia’s manufacturing takes place in TSMC facilities in Taiwan, leaving them exposed to tariffs. Nvidia's stock price rose by 18.7% after Trump announced the 90-day pause, but it was still down by nearly 25% from its January high.