NVIDIA to Invest Half a Trillion Dollars in U.S. Chip Production Over the Next Four Years
NVIDIA has announced major plans to strengthen its industrial presence in the United States with investments estimated to reach hundreds of billions of dollars over the next four years. CEO Jensen Huang confirmed during the GTC 2025 conference on March 18 that Blackwell systems are already being produced on American soil, marking a significant shift in the company’s semiconductor production chain.
Production in TSMC’s Arizona Factory
During a press briefing at GTC, Huang confirmed that the company is actively producing chips in the United States. “We are now running production silicon in Arizona,” said Huang, referring to TSMC’s Fab 21 factory in the state. The term “production silicon” indicates that these chips are not prototypes but real units being manufactured, though the production volume has not been disclosed.
According to the Financial Times, NVIDIA plans to inject around $500 billion into electronics over the next four years, with a significant portion of this money going towards components made in the United States.
“We can easily see ourselves manufacturing several hundred billion of it here in the U.S.,” said Jensen Huang, CEO of NVIDIA
Growing Demand for GPUs and Large-Scale Chips
Despite a decline in sales of GPUs for individual consumers, NVIDIA is seeing steady growth in the data center sector due to the boom in artificial intelligence (AI). These chips, which are typically larger and more complex, require larger silicon areas and are sold at much higher prices. This trend justifies the large investments in new factories and local supply.
Although most of NVIDIA’s chips are currently made by TSMC, the company also relies on a wide range of suppliers. AMD and Intel provide CPUs, Micron, Samsung, and SK hynix supply GDDR and HBM memories, and other components come from Analog Devices and Texas Instruments.
These companies are expanding their operations in the U.S. Micron plans to open a new factory by 2027, SK hynix expects to begin production in 2028, and Texas Instruments plans to start operations at its SM1 unit in 2025.
Shift Towards Self-Sufficiency
The shift in production is driven by clear strategic motivations: reducing dependence on Asian manufacturing, particularly from Taiwan, amid possible geopolitical tensions and potential trade tariffs under a new Trump administration.
Moving production closer to home also offers advantages in logistics, greater control over the supply chain, and stronger political and economic alliances with the U.S. government.
