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Nvidia Plans $500 Billion AI Server Push in the U.S. Backed by TSMC and Foxconn

Nvidia's Market Capitalization Reaches $1 Trillion

Nvidia announced plans Monday to build up to $500 billion worth of AI servers in the United States over the next four years, aligning with the Trump administration’s push to bring tech manufacturing back to American soil.

The move will involve key partners like TSMC, which has begun producing Nvidia’s new Blackwell AI chips at its Arizona facility, and supercomputer production by Foxconn and Wistron in Texas, expected to ramp up within 12 to 15 months.

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With most of its processors currently made in Taiwan, Nvidia is now joining a wave of U.S. tech firms reshoring operations in response to potential tariffs and political pressure.

“It is unlikely Nvidia would have moved any production to the U.S. if it was not for pressure from the Trump administration,” said D.A. Davidson analyst Gil Luria, calling the $500 billion figure “likely hyperbole,” referencing a similar $500 billion pledge by Apple earlier this year.

Apple, which assembles most iPhones in China, had announced a comparable investment in U.S.-based AI infrastructure, including a new facility in Texas.

Nvidia’s announcement also follows a decision by the U.S. to temporarily exempt electronics like smartphones and chips from new tariffs on China, with new chip import duties expected to be revealed within a week.

The exemptions highlight growing concern within the administration over inflation and the impact on the rapidly expanding AI sector, which relies heavily on chip manufacturing in China and Taiwan.

“Bringing AI manufacturing to the U.S. lets us meet surging demand, strengthen our supply chain, and increase resilience,” said Nvidia CEO Jensen Huang. The company expects the initiative to generate hundreds of thousands of jobs over the next few decades.

Trump weighed in Monday, linking Nvidia’s decision directly to politics: “The reason they did it is because of the election on November 5, and because of the thing called tariffs.”

Back in March, Huang said the company saw little immediate impact from tariffs but acknowledged long-term plans to shift production to the U.S.—a timeline now clearly in motion.

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Davie Bancroft is an accomplished author with a strong focus on investment and the tech business landscape. With extensive knowledge and experience in these fields, he provides valuable insights into emerging trends and opportunities. Davie's writings explore the intersection of technology and finance, offering practical advice for investors and entrepreneurs. His expertise and analytical approach make him a trusted resource for those seeking to navigate the dynamic world of investments and tech startups.