Nvidia is gearing up for a massive shift in its production strategy. CEO Jensen Huang announced that over the next four years the company will invest hundreds of billions of dollars in US-made chips and electronics. “Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total,” he said. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the US.”
Huang explained that this move is part of Nvidia’s strategy to reorient its supply chain away from Asia amid ongoing tariff concerns and geopolitical risks. By partnering with US-based suppliers such as Taiwan Semiconductor Manufacturing Company and Foxconn, Nvidia is building a more resilient and diversified network. This shift is supported by significant investments in US manufacturing, including TSMC’s recent $100bn project in Arizona and an additional $65bn initiative backed by the Biden administration, as noted by Reuters.
At Nvidia’s annual developers’ conference, Huang also introduced the next-generation AI chip, Vera Rubin, which is designed to power enormous data centres with clusters of millions of interconnected chips requiring a vast power supply. “Having the support of an administration who cares about the success of this industry and not allowing energy to be an obstacle is a phenomenal result for AI in the US,” he added.
Addressing competition from China, Huang emphasized the challenge posed by Huawei. “Huawei is the single most formidable technology company in China. I think that their presence in AI is growing every single year,” he remarked, highlighting that despite US-led export restrictions, Huawei continues to advance its AI capabilities.
Huang also touched on collaborations with domestic players like Intel. “We evaluate their foundry technology on a regular basis, and we are ongoing in doing that. We look for opportunities to be a customer of theirs,” he said, expressing confidence in Intel’s potential: “I have every confidence that Intel has the ability to do it.” This sentiment reflects a broader industry trend of strengthening US-based semiconductor manufacturing to mitigate risks associated with foreign dependencies.
This strategic overhaul is part of a larger movement among US tech giants, including Apple, who are increasingly investing in domestic production to ensure supply chain stability. Additional insights from Bloomberg indicate that these initiatives are not only about reducing exposure to geopolitical uncertainties but also about securing a sustainable and competitive edge in the global semiconductor market.
Overall, Nvidia’s ambitious plan illustrates the company’s long-term vision for a more robust US supply chain, reinforcing both industry confidence and the nation’s position in the race for AI innovation.
