Nvidia, the semiconductor giant, announced on Monday (Apr 14) that it is planning to produce AI supercomputer chips entirely in the US for the first time. This comes after Commerce Secretary Howard Lutnick announced US President Donald Trump’s plans to impose a new round of levies called “semiconductor tariffs”.

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In a blog post on Monday, the semiconductor maker said that it had commissioned over one million square feet of manufacturing space to build and test its Blackwell chips in Phoenix, Arizona. It added that it is building supercomputer plants in Houston and Dallas. 

Also read | Trump to announce semiconductor tariffs 'over the next week'

Nvidia said it would take at least a year to reach mass production scale at both plants. The company said that production for Blackwell chips has already started at Phoenix chip plants, which are run by Taiwan Semiconductor Manufacturing Company.

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The statement comes as the company hinted at plans last month to invest hundreds of billions of dollars into AI infrastructure in the US over the next four years. This comes as part of a broader stateside development push among semiconductor giants like TSMC and Foxconn.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia CEO Jensen Huang said in a blog post. “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.”

Also read | Tariffs paused, not canceled: Trump’s tech exemption is 'temporary'; new semiconductor tariffs coming 'in a month or two'

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‘The Trump Effect in action’

The White House applauded the company’s move on Monday (Apr 14), calling it “the Trump Effect in action”.

“President Donald J. Trump has made US-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing renaissance, and it’s paying off,” the White House statement said.

Also read | 'No winners in trade war': Xi issues warning against Trump tariffs as China eyes to cast itself as leader in Southeast Asia

Although Trump suggested new tariffs on imported chips soon, he has also called to repeal the bipartisan CHIPS Act. The 2022 law signed by then-President Joe Biden authorized $280 billion in new funding for the domestic semiconductor industry. Though Congressional Republicans haven’t suggested they wish to scrap the measure.

Reportedly, Huang attended dinner, costing $1 million per person, at Trump’s Mar-a-Lago resort in Florida earlier this month. The semiconductor giant has promised the Trump administration a fresh commitment of U.S. investment, NPR reported, and the White House reversed course on a plan to bar U.S. chipmakers from selling Nvidia’s popular H20 AI chips to China.

(With inputs from agencies)