NVIDIA will begin producing some of its AI processors and supercomputers in the United States, a move that was likely influenced by the recent tariff turbulence. The business said that it is developing and testing its Blackwell chips in Arizona and intends to produce its AI supercomputers in Texas, most likely the DGX Spark and DGX Station, which were just revealed.
According to NVIDIA, TSMC is already producing Blackwell chips in Phoenix, Arizona, and the two companies are working together on testing and packaging. Foxconn in Houston and Wistron in Dallas will manufacture the company’s supercomputers in Texas. “Mass production at both plants is expected to ramp up in the next 12-15 months,” according to NVIDIA.
Although the exact model of NVIDIA’s Blackwell processors that TSMC will produce is unknown, the chip manufacturer intends to be prepared to manage a broad range of production for US tech firms, including as Apple and Qualcomm. Under the Biden administration, TSMC was awarded $6.6 billion in CHIPS Act funds, and in March, it pledged to invest an additional $100 billion to grow its operations in the United States.
The company that has benefited the most from the current AI boom, NVIDIA, was set to suffer greatly from the most recent wave of tariffs that President Donald Trump imposed. Moving some production to the US is a far more permanent option to escape the current trade war, although as of April 11, some of those duties have been “paused” for computers and chips, sparing businesses like NVIDIA some financial hardship.