NVIDIA, which builds a $500 billion AI infrastructure in the US, begins domestic production of Blackwell chips

Nvidia has a big bet on American soil. The chipmaker said Monday that it will invest up to $500 billion in building AI infrastructure across the US over the next four years and will work closely with longtime partners such as Taiwan Semiconductor Manufacturers (TSMC). This is the latest indication that the tech giant is beginning to reorganize its manufacturing footprint to change possible tariffs and political winds.

The plan includes the creation of a new Nvidia Blackwell AI chip at a TSMC facility in Phoenix, Arizona, and the creation of a Texas supercomputer manufacturing plant via Foxconn and Wistron. Both facilities are expected to expand production within next year.

This shift has made Nvidia consistent with other major tech players looking to localize their manufacturing industry. For example, Apple reportedly plans to spend $500 billion in the US, including a new Texas plant focused on producing AI servers, Reuters reported.

In February, Apple said it would invest $500 billion to expand its production, bolster chip and server production, double the US presence and hire 20,000 people.

“Additional American manufacturing will meet the incredible demand for AI chips and supercomputers, strengthen our supply chain and increase resilience,” said Jensen Huang, CEO of Nvidia.

The company says the expansion will lead to hundreds of thousands of new jobs over the next decades, and will provide a long-term boost to US technology manufacturing.

In March, Huang said higher tariffs would not bring much short-term concern to Nvidia. Still, he suggested that the company would eventually shift more production nations. That shift is happening now.

TSMC has already begun production of Nvidia’s latest chips at its Arizona plant, the company confirmed Monday. Last year, Reuters reported that TSMC and Nvidia were in talks to manufacture the Blackwell line in the US.

TSMC continues to be the world’s top chip maker, doubling the expansion of America and planning to build $100 billion in five new factories nationwide.