The Trump tariffs have led to another economic victory, with chipmaking giant Nvidia announcing its intention to add hundreds of thousands of manufacturing jobs across the U.S. over the next four years.
On Monday, the company unveiled plans to invest upward of $500 billion in U.S. production as it prepares to manufacture artificial intelligence supercomputer components domestically for the first time. Construction will take place in Arizona and Texas, where Nvidia and its partners have commissioned more than a million square feet of manufacturing space.
The facilities, set for completion by 2029, will focus on churning out the first iterations of the company’s Blackwell architecture, an AI supercomputer chip packed with over 200 billion transistors and designed for accelerated computing. High-level AI inferencing will be a cornerstone of its use, the company states in a release.
Despite being throttled by one of the most complex supply chains in the world, Nvidia claims that it will begin ramping up production of its latest AI technology in the next 12-15 months.
“Manufacturing NVIDIA AI chips and supercomputers for American AI factories is expected to create hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades,” an Nvidia press release states.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, company founder and CEO. “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.”
Shares of Nvidia, the world’s third-most valuable company by market cap, soared on Monday after President Trump expressed a willingness to exempt a limited number of technology products from his international tariffs. Wall Street immediately began speculating that the company, whose fortunes rose on the wave of enthusiasm for AI, would be among the biggest beneficiaries.
The company’s announcement was perfectly timed to grab the attention of Trump, who is looking to point to all signs of positive economic progress amid a fluctuating stock market.
“Within the next four years, NVIDIA plans to produce up to half a trillion dollars of AI infrastructure in the United States through partnerships with TSMCTSM $157.25 (0.11%), Foxconn, Wistron, Amkor and SPIL,” the company’s statement goes on.
The rally extends a boost Nvidia received on Friday after the administration confirmed that key components used in modern computers and smartphones would be exempt from tariffs. Much of the production currently resides in China which sits under a blanket 125% in total tariffs by Trump.
News of more domestic manufacturing under President Trump builds on announcements by Apple, Softbank, OpenAI, Volvo, and Honda to either return or reinvest in bringing manufacturing jobs statewide. A tariff stalemate with China has also made other nations like Vietnam more appealing settings for companies not able to return all jobs to the U.S., a reality acknowledged by Chinese President Xi Jinping this week as he travels to meet with other Asian heads of state and shore up support amid the tariff war.
