A U.S. chipmaker known for designing and supplying the processors behind some of the world’s most powerful AI computers says it will make some of its products in Texas and Arizona.
This would seem to be a significant move for California-based Nvidia, since it currently relies primarily on Taiwan-based TSMC to manufacture its chips. The Standard’s Shelly Brisbin says it is widely believed that Nvidia’s announcement is a response to the Trump administration’s tariff threats.
Nvidia’s Monday announcement promises up to $500 billion investment in the U.S. over the next four years, with chip manufacturing in Texas beginning in the next 12-18 months, in partnership with Foxconn in Houston and Wistron in Dallas. The company’s combined Texas and Arizona manufacturing space will be more than a million square feet, the company’s CEO Jensen Huang said.
TechCruch and NPR have reported that Nvidia’s focus on U.S. manufacturing was the result of a deal with the Trump administration, which will allow Nvidia to continue exporting its high-end H20 chip to China.
Though microchips and tech devices like smartphones and computers were exempted from the administration’s tariff regime last week, President Trump said over the weekend that tariffs on semiconductors could be announced later this week.
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