Nvidia to Build Half-Trillion Dollar AI Infrastructure in US, Starts Chip Production at TSMC's Arizona Plant

Nvidia has announced plans to produce up to USD 500 billion worth of AI infrastructure in the United States over the next four years, marking a major shift in chip manufacturing. The initiative includes the first-ever domestic production of AI supercomputers.

Nvidia Corporation, the world's largest artificial intelligence chipsets manufacturer, announced it will manufacture as much as USD 500 billion worth of AI infrastructure in America in the next four years, a development that constitutes a significant reshoring of high-tech manufacture. The company confirmed that production of its cutting-edge AI chip, codenamed Blackwell, is now underway at Taiwan Semiconductor Manufacturing Co’s (TSMC) new plant in Phoenix, Arizona. This marks the first time Nvidia’s AI supercomputers will be produced on American soil.

"This is one of the biggest announcements you'll ever hear — because Nvidia, as you know, controls almost the entire sector," said former President Donald Trump during a speech on Monday, claiming the decision was driven by tariffs imposed on imported technology components. Nvidia's latest Blackwell chips are key to running complex AI models that underpin systems like ChatGPT and large-scale data analytics, placing them at the heart of the current global AI boom. The announcement aligns with US government efforts to reduce reliance on foreign semiconductor supply chains and to revitalise domestic manufacturing, particularly in high-tech sectors.

The Biden administration’s CHIPS and Science Act, signed into law in 2022, has incentivised semiconductor production on US soil through subsidies and tax credits. TSMC's Arizona fab is the globe's most sophisticated semiconductor manufacturing complex and forms a part of Taiwanese chip behemoth's USD 40 billion expansion to expand its presence in the US. Nvidia's partnership with TSMC for local fabrication is a revolutionary shift in the international AI hardware supply chain.

Market watchers noted this move would enhance national security, reduce supply risks, and lower the geopolitical tensions among East Asian countries regarding chip-manufacturing supremacy. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Budget 2025, Companies,Companies, Business Economy and around the world..