The US tech giant Nvidia, a company that manufactures computer chips, announced it will build AI supercomputers entirely in the United States.
This decision follows President Donald Trump’s plan to implement tariffs on chips imported from other countries.
Nvidia aims to support Trump’s push for domestic production of products.
Additionally, it also shows the tariff fear that President Trump is going to impose in the US. The firm has stated in the press statement that, “Together with leading manufacturing partners, the company has commissioned more than a million square feet of manufacturing space to build and test Nvidia Blackwell chips in Arizona and AI supercomputers in Texas.”
NVIDIA also aims to create supercomputers and chips worth up to $500 billion in the United States over the next four years. To do this, they are teaming up with other companies: TSMC, Foxconn, Wistron, Amkor, and SPIL.
These collaborations will help NVIDIA build and test the technology needed for advanced AI systems, all made in the U.S.
As per the reports, the company said, “The AI chip and supercomputer supply chain is complex and demands the most advanced manufacturing, packaging, assembly, and test technologies. Nvidia is partnering with Amkor and SPIL for packaging and testing operations in Arizona.”
The firm further stated that, “Manufacturing Nvidia AI chips and supercomputers for American AI factories is expected to create hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades.”
Jensen Huang, founder and CEO of Nvidia, said that “The engines of the world’s AI infrastructure are being built in the United States for the first time.”
He further added that, “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.”
According to the data collected by the US Census Bureau in 2024, the US has spent $48 billion in Mexico, $36 billion in China, $26 billion in Taiwan, $16 billion in Vietnam, and $7 billion in Thailand and other countries for imports of computer equipment.
Further, US President Trump has put a 20% tax (tariff) on computer equipment imported from China and has been considering a 25% tax on The U.S. imports its computer equipment primarily from Mexico. More tariffs are planned, and they might target other Asian countries that supply parts for data centers (big facilities that store and process digital information) and key components like semiconductors (computer chips).
However, last week, the U.S. government decided not to put taxes on certain products like smartphones, computers, and memory chips, leading some to think the U.S. might soften its tariff plans. The US President Trump has declared that he will impose tariffs on semiconductors soon., This means that taxes could still be added later.