Nvidia, aiming to diversify its manufacturing and mitigate geopolitical risks, will invest hundreds of billions of dollars in U.S.-made chips over the next four years. CEO Jensen Huang confirmed this at GTC 2025, alongside the announcement that Blackwell systems are being produced domestically. This initiative responds to potential tariffs and concerns surrounding Taiwan's stability.
Huang revealed that Nvidia is "running production silicon" at TSMC's Arizona Fab 21, indicating active chip manufacturing, though he didn't specify the types or volumes of chips being produced there.
However, he told the Financial Times that Nvidia plans to procure approximately $500 billion worth of electronics in total over the next four years, with a substantial portion dedicated to U.S.-based manufacturing.
This strategic move comes as Nvidia's data center GPU sales are surging, offsetting the decline in client PC GPU sales. The increasing die sizes of flagship GPUs further contribute to the growing silicon demand.
Nvidia's product portfolio extends beyond GPUs, encompassing CPUs, DPUs, networking chips, and SoCs for various applications.
While TSMC remains Nvidia's primary manufacturing partner, the company also utilizes other foundries. Moreover, Nvidia's products incorporate numerous chips from other suppliers, highlighting the complexity of its supply chain.
The shift toward U.S.-based manufacturing underscores Nvidia's efforts to secure its supply chain and reduce reliance on Asian production amid evolving global uncertainties
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