Nvidia Says It Started Making Chips for AI in the US

The US began producing chips in factories in Arizona, and would build supercomputers (supercomputers) in Texas. This was the first time that the US had manufactured the key technology for generative AI.

The news comes as tariffs announced by President Trump have spurred anxiety about the cost of importing technology and products historically manufactured overseas. Most of the tariffs announced this month have been put on hold after a major stock market decline, and the Trump administration exempted some electronics, including phones and computers, from certain tariffs over the weekend.

Read more: Buy or Wait Guide: How Tariffs Will Change Tech Prices and What to Do Now

Trump, In a posting he made on his social media site Truth Social, he said that his administration would “taking a look at” the semiconductors and electronics supply chain. This suggests more tariff changes are coming.

Although most consumers don’t buy chips to train and run gen AI models of their own, the prices of hardware affect the final costs of services we consume. An increase in the cost of making products and services, such as office tools and smartphones, could have significant effects.

Nvidia stated that its Blackwell chips are being produced at TSMC’s chip plants in Phoenix. The supercomputers that will be used for AI-focused data centres in Houston and Dallas would be built by Foxconn (in partnership) and Wistron (in partnership). Nvidia expects the manufacturing to ramp up at the supercomputer factories in the next 12 months. Nvidia CEO Jensen Huang made a statement. “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.”

Since President Biden signed CHIPS Act 2022, efforts to bring semiconductor manufacturing in the US have increased. This law provided $53 billion to chipmakers for them to move their production to the states.