Nvidia to Build $500 Billion Worth of AI Servers in the U.S.

Nvidia plans to build $500B worth of AI servers in the U.S. over four years, partnering with TSMC, Foxconn, and Wistron to boost local chip and supercomputer production, according to a report by Reuters.

The announcement comes as more tech firms align with U.S. efforts to bring manufacturing back home. Nvidia currently produces most of its chips in Taiwan. But this move signals a shift toward domestic production amid growing demand for AI hardware.

Production will include Nvidia’s Blackwell AI chips at TSMC’s factory in Phoenix, Arizona. At the same time, supercomputer assembly will take place in Texas, at plants managed by Foxconn and Wistron. These sites are expected to ramp up within 12 to 15 months.

This initiative follows a similar commitment by Apple, which in February announced plans to invest $500 billion in U.S. operations over the next four years. Apple’s investment includes a Texas facility for AI servers.

Nvidia’s plan was revealed just hours after the U.S. announced tariff exemptions for electronics like smartphones and chips. However, new tariff rates for imported chips are expected to be released soon.

“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.

Nvidia also stated that domestic production will help create hundreds of thousands of jobs in the coming decades.

As of this week, TSMC has already begun producing Nvidia’s latest chip generation at its Arizona plant.