NVIDIA has announced it will comply with the recent trends of U.S. tariff policies by domestically manufacturing its AI supercomputers, such as the Blackwell series of products.
In collaboration with manufacturing partners to establish over a million square feet of production space in Arizona and Texas, Team Green is expected to fulfill market demand as well as bolster supply chain resilience, all the while making it a supportive and strategic response to the evolving U.S. trade environment. Under the Trump administration, a series of tariffs have been imposed on imported goods, including electronics and automotive parts, with the intention of encouraging domestic production. These tariffs have prompted companies to reevaluate their supply chains and consider investing in U.S.-based manufacturing to mitigate the impact of increased import costs.
With TSMC’s Phoenix, Arizona plant already churning out Blackwell chips, NVIDIA will be building supercomputer manufacturing plants in Texas with Foxconn in Houston and with Wistron in Dallas. Both are expected to ramp up production over the next 12-15 months.
However, the effectiveness of these tariffs in revitalizing U.S. manufacturing remains a topic of debate. While some companies, like NVIDIA, are expanding domestic operations, others face challenges due to the complex nature of global supply chains and the higher costs associated with U.S. manufacturing. For instance, Blackmagic Design, an Australian digital camera manufacturer, cited tariffs as a factor making U.S. manufacturing economically unfeasible, leading to increased product prices in the U.S.
Despite these challenges, NVIDIA’s investment in U.S. manufacturing is poised to contribute significantly to the domestic economy as they plan to produce up to half a trillion dollars of AI infrastructure in the U.S. over the next four years and creating hundreds of thousands of jobs to drive substantial economic growth in the coming decades.
