Nvidia Plans U.S. Factories for AI Supercomputers, Bolstering Domestic Production

Nvidia (NASDAQ: NVDA) announced on Monday that it is partnering with key industry players to design and build the nation's first factories dedicated to manufacturing AI supercomputers entirely on U.S. soil. The move is set to strengthen the company's supply chain and meet rapidly growing demand for artificial intelligence infrastructure.

Key Developments

• New Manufacturing Facilities:

  • Nvidia has secured over one million square feet of manufacturing space in Arizona to produce and test its Blackwell AI chips.

  • The company is also setting up supercomputer production plants in Texas, with facilities in:

    • Houston, developed in partnership with Foxconn.

    • Dallas, in collaboration with Wistron.

  • Mass production at the Texas sites is expected to begin within 12 to 15 months.

• Advanced Chip Production:

  • Production of Nvidia's Blackwell chips has already started at TSMC's Phoenix facilities.

  • To support packaging and testing operations in Arizona, Nvidia is partnering with Amkor and SPIL.

  • The advanced manufacturing, packaging, and testing technologies employed will support the company's next-generation AI supercomputers, which Nvidia describes as the backbone for a new generation of data centers—“AI factories.”

• Economic Impact and Strategic Ambitions:

  • Nvidia projects that within the next four years, it will produce up to half a trillion dollars of AI infrastructure in the United States through these partnerships.

  • The domestic build-out is expected to generate tens of gigawatt-scale AI factories, create hundreds of thousands of jobs, and contribute significantly to long-term economic security.

  • The company is also deploying its own AI technologies—using digital twin software through Nvidia Omniverse and robotics via Nvidia Isaac GR00T—to design and operate these facilities.

Statements from Leadership

• Jensen Huang, Founder and CEO:

  “The engines of the world's AI infrastructure are being built in the United States for the first time. 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.”

• Market Reaction:

  • Following the announcement, Nvidia shares gained as much as 3% earlier in the session before stabilizing.

• Political Commentary:

  • In comments following the investment, President Trump remarked that the decision was influenced by both the upcoming election and tariff policies, emphasizing the high respect Nvidia commands in the industry.

Looking Ahead

Nvidia's ambitious plan to localize the production of its AI supercomputers marks a significant shift in the global semiconductor landscape. By building these “AI factories” domestically, the company not only enhances its supply chain resilience but also positions itself to capitalize on the surging demand for high-performance computing in the artificial intelligence era.

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