Nvidia intends to devote funds into American projects
Nvidia to Bring AI Chip Production to the USA
In a significant move for the tech industry, Nvidia has announced plans to produce its next-generation Grace CPUs at TSMC's factory in Phoenix, Arizona, within the next 12 to 15 months.
The news of Nvidia's investment plans was first reported by the Financial Times in March. According to the company's CEO, Jensen Huang, expanding American manufacturing will help serve the growing demand for AI chips and supercomputers better.
The decision to move production to the USA was likely not made without the potential pressure from the Trump administration. Analyst Gil Luria from D.A. Davidson suggested that this could have influenced Nvidia's decision, as other tech companies are also reportedly moving chip production to the USA for similar reasons.
Nvidia primarily manufactures its processors in Taiwan but is now moving a part of its chip production to the USA due to potential US tariffs. The move will not only strengthen the company's supply chain but also increase its resilience.
In addition to the production in Arizona, Nvidia will collaborate with the U.S. National Science Foundation (NSF) and the Allen Institute for AI (Ai2) in a public-private partnership to advance open-source AI. The company will invest $152 million to build open multimodal AI infrastructure.
Nvidia will also partner with Lambda and Super Micro Computer Inc. to build production-ready AI server clusters in the U.S. The partnership aims to scale AI infrastructure with NVIDIA Blackwell GPU-based systems and Supermicro servers. However, no specific collaboration worth up to $500 billion was mentioned in the sources.
Supercomputer manufacturing facilities in Texas will be operated by Foxconn and Wistron for Nvidia. The production ramp-up for these products is expected to start within the same 12 to 15-month timeframe.
This shift towards American manufacturing is expected to boost the tech industry in the USA and further solidify Nvidia's position as a leader in AI and supercomputer technology.
