[News] NVIDIA Plans $500 billion AI Investment in U.S., with Taiwan’s TSMC and Foxconn Leading the Charge

Shortly after Trump signaled new tariffs on chips coming over this week, NVIDIA announces plans to pour up to $500 billion into U.S. AI server production over the next four years. Notably, Taiwanese tech giants like TSMC and Foxconn are set to play key roles in driving this massive initiative, according to NVIDIA’s press release and media reports.

The plan, announced Monday, includes producing its Blackwell AI chips at TSMC’s new facility in Phoenix, Arizona, and teaming up with Taiwanese EMS companies Foxconn and Wistron to build supercomputers on American soil. As highlighted by Reuters and the Economic Daily News, the projects are expected to go online within 12 to 15 months.

All-American AI supercomputer supply chain

As per the Economic Daily News, NVIDIA used to rely on TSMC in Taiwan for GPU production, with CoWoS packaging and testing completed locally before shipping them off for global assembly. Now, the report notes that NVIDIA is going all-in on U.S. manufacturing—building a fully American-made AI supercomputer supply chain from chips to servers.

The Economic Daily News report suggests that the AI supercomputer base in Texas points to Foxconn’s upcoming major investment in U.S.-based AI server manufacturing. Meanwhile, Wistron’s factory in Dallas is also emerging as a key assembly hub for NVIDIA’s AI supercomputers, the report adds.

In addition to that, as part of the project, NVIDIA is also teaming up with Amkor and Taiwan’s SPIL for advanced chip packaging in the U.S., as per its press release.

The Trump Effect?

In response, the White House issued a statement calling this a “Trump effect,” with NVIDIA leading the charge in the American-made chip boom.

NVIDIA is certainly not the first tech giant to join the U.S. investment party. Back in February, Apple pledged a massive $500 billion investment in the U.S. over the next four years—including plans for an AI server factory in Texas. However, for now, most of its iPhones are still assembled in China and India.

Read more

• [News] Trump’s Planned H20 Chip Curbs Reportedly Put on Hold after NVIDIA Pledges New AI Investments

(Photo credit: NVIDIA)