Published: April 2025 | Source: AP News

Overview

In a major strategic pivot, Nvidia has announced it will begin manufacturing its next-generation AI chips and supercomputers inside the United States. The move comes as Washington intensifies export controls on advanced AI technologies, particularly those destined for China.

Key Highlights

1. U.S.-Based Production

Nvidia is establishing over 1 million square feet of manufacturing and testing space across Arizona and Texas.

The facilities will support the production of Blackwell GPUs and high-performance AI supercomputers.


2. Strategic Partnerships

Nvidia is collaborating with major players like TSMC, Foxconn, and Wistron to build U.S.-based infrastructure.

The broader plan includes building $500 billion worth of AI computing infrastructure over the next four years.

3. Export Controls and Revenue Impact

The U.S. government has tightened export restrictions on advanced AI chips, including Nvidia’s H20 model.

These restrictions could result in $5.5 billion in losses for Nvidia in Q1 alone, due to inventory disruptions and canceled purchases from China.


4. Policy and Supply Chain Context

The decision aligns with U.S. goals to:

Reshore critical tech manufacturing

Reduce dependency on Chinese supply chains

Enhance domestic semiconductor resilience

What It Means for the Global Tech Race

This development reflects an intensifying geopolitical tech rivalry, where AI chips have become strategic assets. For both national security and commercial competitiveness, where those chips are designed and manufactured now matters more than ever.

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Original Article – https://apnews.com/article/nvidia-ai-artificial-intelligence-tariffs-dcf48112ce98a7b61bfd32157359ce2f