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HomeWorldNvidia announces $500 billion investment to manufacture AI chips in U.S.

Nvidia announces $500 billion investment to manufacture AI chips in U.S.

Nvidia CEO Jensen Huang announced a $500 billion investment in U.S. AI infrastructure, marking the company's first domestic chip manufacturing. The move aims to strengthen supply chains and meet growing AI demand.

May 01, 2025 / 08:51 IST
Nvidia invests $500 billion in U.S. AI infrastructure, boosting manufacturing.

At a White House event, Nvidia CEO Jensen Huang outlined the company's $500 billion investment in artificial intelligence (AI) infrastructure in the United States. This marks a significant shift from Nvidia’s previous reliance on Taiwan for chip production.

Huang emphasized the historic importance of Nvidia’s AI advancements, noting how the computing industry has remained largely unchanged since the 1960s. "We’ve reinvented computers again," Huang said, highlighting the need for highly advanced manufacturing processes for Nvidia’s powerful GPUs, which will be built in the U.S. to meet the growing demand for supercomputers and AI chips.

“Without the president's leadership, his policies, his support, and very importantly, his strong encouragement... manufacturing in the United States wouldn’t have accelerated to this pace," Huang acknowledged, praising President Trump's pivotal role in driving the project. Nvidia’s new U.S. manufacturing facilities aim to meet the rising demand for AI systems that are set to revolutionize various industries.

The investment includes partnerships with major manufacturers like TSMC, Foxconn, Wistron, Amkor, and SPIL. Over a million square feet of production facilities will be built, generating hundreds of thousands of jobs. TSMC has already started manufacturing Nvidia's Blackwell chips in Arizona, while Amkor and SPIL will handle packaging and testing. Supercomputer manufacturing plants are also planned in Houston and Dallas with Foxconn and Wistron.

Huang stressed the role of advanced technology in manufacturing, stating, "Manufacturing isn’t about low-cost labor anymore. It’s about technology." He also emphasized the importance of energy policy in supporting AI growth, thanking the Trump administration for its backing of the AI infrastructure project.

The U.S.-based manufacturing effort aligns with broader government objectives to strengthen domestic production and reduce reliance on foreign supply chains. AI is expected to revolutionize industries from healthcare to financial services.

MC World Desk
first published: May 1, 2025 08:45 am

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