Technology company Nvidia will spend hundreds of billions on manufacturing chips and other electronics in the United States, a move that comes as President Donald Trump hikes tariffs for products made overseas.
Nvidia CEO Jensen Huang said in comments to the Financial Times Thursday that the company is seeking to decrease reliance on Asian supply chains.
“Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total,” Huang told the business news outlet.
“And I think we can easily see ourselves manufacturing several hundred billion of it here in the U.S.,” he added.
Nvidia can now manufacture its newest systems domestically through Foxconn and Taiwan Semiconductor Manufacturing Company, both of which have expanded their footprints in the United States in recent months.
“TSMC investing in the U.S. provides for a substantial step up in our supply-chain resilience,” the executive noted.
He also foresaw heightened competition with Chinese technology company Huawei.
Huang credited the White House, which has hiked tariffs on China and other nations, for making efforts that he said would accelerate artificial intelligence development.
“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 U.S.,” he said.
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In past years, American companies have been reliant on TSMC facilities in Taiwan, subjecting their operations to the constant threat of Chinese aggression.
But Huang now believes that threats to production in Taiwan “will be uncomfortable” but if something should happen to that country, “it should be OK.”
“The most important thing is to be prepared,” Huang said. “At this point, we know that we can manufacture in the U.S., we have a sufficiently diversified supply chain.”
Axios marked the announcement as a win for the Trump administration, noting that Nvidia is the latest firm to unveil plans for further domestic manufacturing investment.
The outlet previously reported that TSMC vowed earlier this month to invest another $100 billion in American semiconductor production.
The company will build three fabrication plants, two advanced packaging facilities, and a research and development building.
Between the $100 billion unveiled this month and another $165 billion commitment in Arizona, TSMC said they made the largest foreign direct investment in the history of the United States.
TSMC expects the projects to support 40,000 construction jobs over the next four years, as well as thousands of technology jobs in the future.
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