CIOTechOutlook Team | Tuesday, 15 April 2025, 11:24 IST
US-based semiconductor company NVIDIA is collaborating with its manufacturing partners to develop new factories that for the first time ever will manufacture NVIDIA AI supercomputers entirely in the US.NVIDIA announced on its website Monday morning it has secured, with leading manufacturing partners, more than a million square feet of manufacturing space to develop and test NVIDIA Blackwell chips in Arizona, and AI supercomputers in Texas.
The announcement comes on the heels of US President Donald Trump announcing on Sunday he would announce the tariff rate on imported semiconductors over “the next week”, and that there would be flexibility on certain companies within the sector, according to a report by Reuters. Trump has previously levied reciprocal tariffs on countries all over the globe but had recently announced a 90-day pause on tariff increases on companies except for China.
It was reported last December that Nvidia’s Blackwell chips were being made at the TSMC’s factories in Taiwan. NVIDIA states that they have commenced production of NVIDIA Blackwell chips at TSMC’s chip factories located in Phoenix, Arizona. NVIDIA has supercomputer factories being built in Texas with Foxconn manufacturing in Houston, and Wistron in Dallas.
Mass production at both factories is expected to accelerate during the next 12- to 15-months. The AI chip and supercomputer supply chain is a sophisticated and requires the most advanced manufacturing, packaging, assembly, and test technologies. NVIDIA is working with Amkor and SPIL for packaging and test operations in Arizona.
Over the next four years, NVIDIA will manufacture, with partners TSMC, Foxconn, Wistron, Amkor, and SPIL, hundreds of billions of dollars' worth of AI infrastructure in the United States. All these world-class companies are expanding their partnership with NVIDIA and growing their own businesses, all while privileged to have an opportunity to expand their global footprint and secure supply chain resiliency.
NVIDIA AI supercomputers are the engines of what these companies have built - new data centers that were invented for the single purpose of processing artificial intelligence - AI factories which are the AI infrastructure that are now powering a new AI industry. Tens of gigawatt AI factories in the next few years are expected. Manufacturing NVIDIA AI chips and supercomputers for America's AI factories is expected to create hundreds of thousands of jobs and create trillions of dollars of economic security over the coming decades the company says.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, founder and CEO of NVIDIA. “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.”
The company will apply its state-of-the-art AI, robotics and digital twin technologies to design and operate the facilities, with NVIDIA Omniverse for developing digital twins of factories, and NVIDIA Isaac GR00T for developing robots to automate the manufacturing.