Nvidia plans to spend hundreds of billions over the next four years to manufacture chips and other electronics in the United States. The company's CEO, Jensen Huang, told the Financial Times that the company is trying to rebalance its supply chain away from Asia in response to Donald Trump's tariff threats.
Overall, the company plans to buy about half a trillion dollars worth of electronics over the next four years, Huang said.
In his view, the Trump administration can accelerate the development of the American AI industry.
What does this mean for the semiconductor industry?
- The announcement is part of a broader trend in which leading tech companies, including Apple, are announcing multibillion-dollar investments in the United States.
- This month, TSMC also announced a $100 billion investment in manufacturing facilities, on top of the $65 billion agreed under the previous Biden administration.
- Trump's "America First" policy continues to impact business investment. Earlier last month, Trump signed an executive order to impose an additional 10% tariff on Chinese goods, on top of the existing tariffs of up to 25% imposed during his first presidency.
- In recent years, companies such as Nvidia and Apple have relied heavily on TSMC's advanced manufacturing facilities in Taiwan.
- This dependence has been exacerbated by the threat of conflict with China, which considers Taiwan to be its territory, and potential tariffs on Taiwanese semiconductors.
At the same time, the United States is tightening restrictions on the export of Nvidia's flagship AI chips, which are used to train state-of-the-art artificial intelligence models. The new set of restrictions, approved by the Biden administration, is expected to go into effect in May.
