Updated at 9:45 AM EDT
Nvidia unveiled plans for a massive investment in its U.S.-based manufacturing Monday as the ripple effects of President Donald Trump’s tariff gambit, as well as China’s retaliation toward the tech sector, continue to reverberate.
Nvidia said it planned to produce an American-made supercomputer from a U.S. platform, and planned to produce as much as $500 billion in artificial-intelligence infrastructure over the next four years as part of a partnership with Foxconn (FXCOF) and Taiwan Semiconductor. (TSM)
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The plants are expected to be built in Arizona, to test Nvidia Blackwell chips, and in Texas, to test AI supercomputers.
Nvidia CEO Jensen Huang unveiled plans for a massive U.S. manufacturing investment.
PATRICK T. FALLON/Getty Images
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said CEO Jensen Huang. “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.”
Nvidia has found itself in the crosshairs of the accelerating trade war between Washington and Beijing, with Trump planning tariffs on the tech sector that will sit alongside his recently reduced 20% levy on China-made goods.
Related: Apple, Nvidia lead tech tumble as China retaliates on U.S. tariffs
Late last month, London’s Financial Times reported that Beijing was looking to curb some of Nvidia’s exports on the basis of new environmental restrictions.
Earlier this year, China’s State Administration for Market Regulation launched an investigation into Nvidia tied to allegations it had breached anti-monopoly laws with its $6.9 billion purchase of Mellanox Technologies in early 2020.
Nvidia generated around $5.4 billion in China-based revenue for its fiscal third quarter ended in October, with another $5.15 billion coming from clients and customers in Taiwan, which collectively accounted for some 30% of the group’s overall tally of $35.1 billion.
Nvidia shares were marked 0.88% higher in early trading immediately following the investment announcement to changed hands at $111.98 each.
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Nvidia’s new investment plans follow a similar move by Apple (AAPL) , which told investors in February that it would pair with its key supplier to build an AI-focused data center in Texas as part of a broader plan to spend more than $500 billion in the U.S. over the next four years.
The new data center, expected to be completed by 2026, will house servers that support Apple Intelligence, the group’s bespoke AI technology, which now powers its latest generation of iPhones and laptop computers.
Taiwan-based Hon Hai Precision, which is commonly known as Foxconn and is Apple’s main iPhone assembler, will also help construct the 250,000-square-foot data center, slated for the Houston area.
Related: Analysts revisit Apple stock price target as Trump offers tariff relief
Apple CEO Tim Cook said the spending commitment signaled it’s “bullish on the future of American innovation” and will include a boost to its US Advanced Manufacturing Fund aimed at developing high-tech production skills.
The broader $500 billion spending plan includes, however, purchases from Apple suppliers, media production for its Apple TV+ division and other infrastructure tied to its Apple Intelligence rollout.
Apple did not break down the amount of new spending included in its $500 billion plan, which works out to around a third of its annual revenue when spread over the four-year period.
