What happened? Nvidia has announced a plan to transfer the production of its AI supercomputers to the United States completely, a strategy that reflects a comprehensive industry change in response to trade policies in favor of domestic manufacturing. The initiative, which includes partnership with key manufacturers, will see NVidia’s Blackwell Chips and AI super computers produced and tested in features in Arizona and Texas.
The project extends to more than a million square feet of manufacturing place, already running operations. Nvidia’s blackwell chips are being produced in TSMC features at Phoenix, Arizona, while superprocks in Texas are in the development of assembly plants (are leading efforts in Foxconn Houston, and installing operations in Wistron Dallas). Nvidia hopes that these sites will start mass production within 12 to 15 months.
To address the complications of AI chips and supercomputer production, which require advanced manufacturing, packaging, assembly and testing technologies, the company has participated with AMKOR and SPIL for packaging and testing tasks in Arizona.
This step comes when companies in industries respond to American trade policies, which aims to rebuild manufacturing. Nvidia CEO Jensen Huang has implicated both shifts as a strategic and practical reaction to the growing demand for AI technologies.
“Adding American manufacturing helps us meet unreliable and growing demand for AI chips and supercomputers, strengthens our supply chain, and increases our flexibility,” said Huang.
The NVIDIA plans to produce domestic -infrastructure domestic in the next four years to produce up to $ 500 billion.
The announcement also follows the reports that NVIDIA recently saved the domestic manufacturing agreement with the Trump administration and saved from potential export sanctions on its H20 chip. One of the most advanced chips in NVidia, H20, is still eligible for exports to China, CEO Jensen Huang was exempted from restrictions after being committed to major investment in US-based production for the components of the AI data center, according to the NPR, citing two sources familiar with the case.
In a related development, former President Trump allegedly warned TSMC that it could face up to 100 percent tariff if it failed to set up a new chip fabrication plant in the US.
The implications of NVIDIA’s localization strategy are beyond manufacturing logistics. The company’s AI supercomputer is expected to play a central role in giving power to the so-called “AI factories”-Deta Centers are specially designed for artificial intelligence workloads. These features are considered an important infrastructure for an emerging AI-operated economy, with estimates for dozens of Gigawatt-Skele AI factories in the coming years.
NVIDIA is also integrating its advanced techniques in these efforts. The company plans to use its omnipresent platform to create digital twins of factories for increased plan and adaptation. In parallel, its ISAAC GR00T robots will automate manufacturing processes, offering a glimpse of how AI and robotics can revolutionize industrial operations.
