Leading artificial intelligence chip maker Nvidia (NASDAQ:NVDA) plans to invest hundreds of billions of dollars in the U.S. supply chain over the next four years. CEO Jensen Huang told the Financial Times that the increased U.S. production was being made possible thanks to suppliers such as the Taiwan Semiconductor Manufacturing Company (NASDAQ:TSM) and Foxconn (NASDAQ:FXCOF).
“Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total,” Huang told the FT. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the U.S.”
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Huang, speaking on March 18 during his company’s GTC convention, believed the Trump administration’s “America First” policy would enable his company to ramp up chip production in the U.S.
“Having the support of an administration who cares about the success of this industry and not allowing energy to be an obstacle is a phenomenal result for AI in the U.S.,” he told the FT.
Huang’s sentiments follow pledges by other tech companies to onshore manufacturing in the U.S. rather than overseas. Apple has committed to spending $500 billion in the U.S. over the next four years, expanding teams and facilities in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington.
TSMC has already committed a $100 billion investment in a chip fabrication plant in Arizona, which President Donald Trump has said would create thousands of jobs bringing Taiwan Semiconductor’s investment to “about $165 billion.”
“TSMC investing in the U.S. provides for a substantial step up in our supply chain resilience,” Huang told the FT.
TSMC’s Taiwan-based production facilities have been an increasingly pivotal part of Nvidia and Apple’s manufacturing process, which Trump was once keen to change, previously threatening to impose tariffs on Taiwan. By pledging to build new facilities in the U.S., Trump said that Taiwan avoided a 25% tariff.
“TSMC already has plants in the US and Japan, and it’s now building a new plant in Germany,” Taiwanese presidential office spokesperson Karen Kuo told the Guardian. “These have nothing to do with tariffs. TSMC’s global expansion is a crucial development.”