For the first time, Nvidia will manufacture some of its artificial intelligence chips on American soil, as part of a massive domestic expansion that could redefine the future of U.S.-based semiconductor infrastructure. The chipmaking giant announced Monday that it plans to invest up to $500 billion in AI manufacturing and infrastructure across the U.S. over the next four years.

Previously, Nvidia’s chip production had largely been based in Taiwan. Now, the company is joining forces with several major global players—Taiwan Semiconductor Manufacturing Co. (TSMC), Foxconn, Wistron, Amkor, and Silicon Precision Industries (SPIL)—to build out a sprawling network of production and assembly operations in Arizona and Texas.

TSMC has already begun manufacturing Nvidia’s high-performance Blackwell chips at its new Arizona facility. Meanwhile, Nvidia is working with Amkor and SPIL on packaging and testing operations also based in Arizona. Notably, Amkor unveiled plans in December 2023 to build a $2 billion chip packaging plant in the state.

In Texas, Nvidia is expanding its manufacturing partnerships to include Foxconn in Houston and Wistron in Dallas. The two companies will help construct supercomputer production plants that are expected to scale up operations over the next 12 to 15 months, according to Nvidia.

CEO Jensen Huang highlighted the strategic significance of this shift toward U.S.-based manufacturing.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Huang said in Monday’s announcement. “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.”

The ambitious $500 billion investment follows comments Huang made last month to the Financial Times, where he revealed the company’s intention to scale U.S. production significantly in the coming years.

This announcement arrives amid a broader national push to bring critical electronics manufacturing back to the U.S. The Trump administration has prioritized this agenda through its tariff regime, aimed at encouraging domestic investment.

On Friday, electronics manufacturers were granted partial relief, as President Donald Trump announced exemptions for a number of electronics components—including smartphones, display modules, and certain integrated circuits. These exemptions fall under a list of 20 harmonized tariff codes that classify the products as “semiconductors.”

The semiconductor sector has responded with a surge of U.S. investment. Last month, TSMC committed $100 billion toward American manufacturing efforts, including several facilities in Arizona. Similarly, Apple announced plans in February to match Nvidia’s investment, pledging $500 billion to grow its U.S. manufacturing footprint. Apple frequently relies on Foxconn, another Nvidia partner, to produce many of its flagship devices overseas.

With this move, Nvidia joins the growing chorus of global tech leaders reinvesting in American manufacturing, as the demand for AI infrastructure soars and supply chain resilience becomes a national priority.

Originally reported by Kate Magil in Construction Dive.