AI News Monitor

In a major shift that highlights the impact of escalating trade tensions, Nvidia has announced plans to produce its next-generation AI supercomputers entirely within the United States. The move comes amid sweeping tariff actions by President Donald Trump, including a 32% tariff on Taiwanese imports and a staggering 145% tariff on goods from China.

Nvidia said it will invest in manufacturing up to $500 billion worth of AI infrastructure domestically over the next four years, a significant pivot for a company that has long relied on overseas production. Its Blackwell AI chips, the cornerstone of its latest systems, have already entered production at Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Phoenix, Arizona.

“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,” said Nvidia CEO Jensen Huang.

Although Trump temporarily exempted semiconductors and tech devices from the tariffs late Friday, the administration has since hinted at forthcoming duties on imported chips, leaving tech companies in limbo. The White House called Nvidia’s announcement “the Trump effect in action,” though the company declined to directly link its decision to the tariff policy.

Beyond Arizona, Nvidia is expanding manufacturing with new facilities in Texas, partnering with Foxconn in Houston and Wistron in Dallas. The company expects these plants to reach mass production within 12 to 15 months. It will also use its own AI technologies to create “digital twins” of the factories and automate production through robotics.

Despite Monday’s stock dip — NVDA fell 6.33% in after-hours trading — the long-term bet on U.S. manufacturing could position Nvidia as a leader in domestic AI production, amid a rapidly changing geopolitical and trade landscape.