NVIDIA has announced plans to manufacture AI supercomputers entirely in the U.S. for the first time, collaborating with partners like TSMC, Foxconn, Wistron, Amkor, and SPIL. The initiative includes over a million square feet of manufacturing space in Arizona for producing Blackwell chips and in Texas for assembling supercomputers, with mass production expected to start within 12-15 months. NVIDIA aims to produce up to $500 billion in AI infrastructure domestically over the next four years, leveraging its AI, robotics, and digital twin technologies to design and operate these facilities. The move is projected to create hundreds of thousands of jobs and strengthen the U.S. supply chain.
Nvidia is the latest to join the investment race. TSMC is building three factories in Arizona, with $65 billion+ investment for 2nm chips, aiming for production by 2028. Supported by $6.6 billion in CHIPS Act grants. Intel is expanding in Arizona, Ohio, New Mexico, and Oregon, with $100 billion+ over five years, including $8.5 billion in direct funding and $11 billion in loans. GlobalFoundries, Micron and others have over 70 projects across 25 states, with Micron planning $150 billion for memory chip facilities in New York and Idaho.
The U.S. is focusing on domestic chip production to enhance its National Security. This will reduce reliance on foreign supply chains especially in Asia to safeguard critical technology amid geopolitical. This will also boost Economic Resilience by mitigate risks from global supply chain disruptions, as seen during the COVID-19 pandemic which caused chip shortages impacting industries like automotive and tech. This will counter China’s Ambitions by limiting China’s access to advanced chips and curb its technological rise, aligning with export controls and trade restrictions on firms like Huawei.
Nvidia will get tax incentives under CHIPS and Science Act which provides $52 billion in subsidies and tax credits to encourage domestic production by companies like TSMC, Intel, and NVIDIA.
Nvidia investment is step towards driving Innovation at home turf and establishing leadership by strengthen U.S. dominance in AI, semiconductors, and emerging tech by fostering local R&D and manufacturing ecosystems. This will generate high-skill, well-paying jobs in manufacturing and tech, supporting economic growth. For instance, NVIDIA’s initiative alone could create hundreds of thousands of jobs.
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