Nvidia Plans Massive Outlay on US-Made Electronics, FT Says
Nvidia Corp. is making a significant investment in US-made chips and electronics, with plans to spend several hundred billion dollars over the next four years, according to a report by the Financial Times. Chief Executive Officer Jensen Huang shared that the latest chips designed by Nvidia and Nvidia-powered servers for data centers can now be manufactured at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. This move is seen as a major step towards enhancing supply chain resilience for the chipmaker, which is based in Santa Clara, California.
During the recent GTC developer conference hosted by Nvidia, Huang announced the company’s intention to shift manufacturing onshore. Nvidia is already utilizing TSMC’s Arizona factory to produce some of its highly sought-after graphics processing units, which are crucial for the current surge in AI investment. Following the news, shares in TSMC and other Nvidia suppliers like SK Hynix Inc. in South Korea saw an increase in value.
In its 2024 annual report, Nvidia disclosed that it had $20 billion in total future purchase commitments as of January 28, 2024. Huang, who previously met with President Donald Trump in January, praised the new administration’s support for the AI sector, describing it as a “phenomenal result for AI in the US.” He also commended TSMC for expanding its investment in the US, as the company is the sole manufacturer for Nvidia’s most advanced AI chips.
TSMC, considered Taiwan’s most valuable company, along with other industry peers, is prioritizing the US in their expansion plans. This shift comes as tariff threats by the Trump administration accelerate plans to establish a presence in the country. TSMC CEO C.C. Wei recently announced an additional $100 billion investment in the US, aligning with Trump’s initiatives, while Foxconn is collaborating with Apple Inc. to set up an AI server assembly site in Texas.
Overall, Nvidia’s commitment to sourcing US-made chips and electronics underscores the company’s dedication to bolstering its supply chain resilience and supporting the growth of the AI sector in the US. With a focus on onshoring manufacturing and collaborating with key partners like TSMC and Foxconn, Nvidia is poised to drive innovation and contribute to the advancement of technology in the country.
This article was originally published on Bloomberg and is ©2025 Bloomberg L.P.
