Nvidia is set to invest hundreds of billions of dollars in US-based chip and electronics manufacturing over the next four years, reported the Financial Times, citing the company’s CEO Jensen Huang.
This shift aims to mitigate risks associated with the US President Donald Trump’s tariff threats.
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Nvidia’s decision aligns with similar investment plans from other technology companies such as Apple, influenced by Trump’s “America First” trade policies.
“Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total,” Huang told the publication. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the US.”
He highlighted the capability to manufacture Nvidia’s latest systems in the US through suppliers such as Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn.
At Nvidia’s annual developers’ conference, Huang unveiled the next generation AI chip, Vera Rubin.
He outlined plans to build clusters of interconnected chips in large data centres, requiring substantial power supply.
Huang expressed confidence that the Trump administration could boost the development of the US AI industry.
He said: “Having the support of an administration who cares about the success of this industry and not allowing energy to be an obstacle is a phenomenal result for AI in the US.”
TSMC recently announced a $100bn investment in chip manufacturing facilities in Arizona, adding to a $65bn investment agreed under the Biden administration.
Nvidia’s Blackwell systems are now produced in the US, according to Huang.
In recent years, major American technology firms, including Nvidia and Apple, have come to heavily rely on TSMC’s fabrication facilities located in Taiwan.
The reliance on TSMC’s facilities in Taiwan has been challenged by China’s territorial claims and tariff threats.
“The most important thing is to be prepared,” according to Huang.
“At this point, we know that we can manufacture in the US, we have a sufficiently diversified supply chain.”
He stated that while a potential disruption to production in Taiwan would be challenging, it would still be “OK”.
The US has imposed export controls on Nvidia’s chips used for advanced AI models, with further restrictions set to take effect in May this year.
Meanwhile, Chinese chipmakers face limitations in acquiring advanced equipment such as ASML’s lithography machines.
Despite these challenges, Nvidia continues to generate significant revenue from China, even as competition from Huawei intensifies.
In a separate development, Nvidia has reportedly acquired synthetic data firm Gretel for a nine-figure sum, exceeding Gretel’s recent valuation of $320m.
The acquisition, reported by Wired, will integrate Gretel’s technology into Nvidia’s cloud-based AI services.
Gretel, founded in 2019, offers a synthetic data platform and APIs for developers to build generative AI models, addressing data scarcity and privacy concerns.
