SAN FRANCISCO (KCBS RADIO) – This week, Bay Area technology company NVIDIA announced that it would “produce NVIDIA AI supercomputers entirely in the U.S.” for the first time. Bloomberg reporter Brody Ford joined KCBS Radio to break down exactly what the announcement means.
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In its Monday announcement, NVIDIA said that it planned to “produce up to half a trillion dollars of AI infrastructure” in the U.S. over the next four years through partnerships several companies, including TSMC, Foxconn, Wistron, Amkor and SPIL. It also said that it commissioned more than 1 million square feet of manufacturing space to build and test NVIDIA Blackwell chips in Arizona and AI supercomputers in Texas.
“A lot of companies, particularly in tech, have been feeling some... pressure to announce some big spending numbers,” said Ford. He explained that President Donald Trump has encouraged companies to make big spending commitments into developing the nation’s artificial intelligence (AI) and tech industry.
However, Audacy has also reported on the challenges that Trump’s tariff moves could potentially pose for AI development in the U.S., since many of the materials needed for the tech are currently manufactured overseas. While Trump hopes to bring more manufacturing to the U.S., experts have noted that it could take years to build up the infrastructure needed to meet the demand for things like semiconductors that are needed to make advanced tech work.
NVIDIA’s announcement indicates that it is kicking off a new era in manufacturing here in the U.S.
“NVIDIA Blackwell chips have started production at TSMC’s chip plants in Phoenix, Arizona. NVIDIA is building supercomputer manufacturing plants in Texas, with Foxconn in Houston and with Wistron in Dallas,” it said. “Mass production at both plants is expected to ramp up in the next 12-15 months.”
According to Ford, there’s more to the story.
“I think what is important to consider is that you can say something is made in the U.S., but that’s often a pretty nebulous distinction, right?” he noted. “I mean, we don’t know the specifics here, so I don’t want to over speak, but many times you can get many components brought into the U.S.
and do some level of final assembly work or, you know, there’s different tiers of what it takes to be manufactured here. And so, it doesn't mean that every single component isn’t still going to come from somewhere else.”
In its press release, NVIDIA said the “AI chip and supercomputer supply chain is complex and demands the most advanced manufacturing, packaging, assembly and test technologies.” It also said that its partnerships with Amkor and SPIL will include “packaging and testing operations in Arizona.”
Furthermore, it said that tens of “gigawatt AI factories” are expected to be built in the coming years. At those factories, it said NVIDIA AI chips and supercomputers for American AI factories will be manufactured.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, founder and CEO of NVIDIA. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”
As Ford mentioned, other companies in the U.S. have announced investments into developing AI since Trump took office in January. For example, Audacy reported in February that tech giant Apple announced plans to build a quarter-million-square-foot factory in Houston, Texas, by 2026 to build and house its AI servers.
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