Nvidia to Invest Hundreds of Billions in US Manufacturing Amid Shifting Supply Chains

Nvidia, the world’s largest computer chipmaker, has pledged to invest “several hundred billion” dollars in US manufacturing over the next four years. Jensen Huang, the company’s chief executive and co-founder, confirmed the move as Nvidia seeks to reshape its supply chains to reduce reliance on Asia amid increasing geopolitical risks and trade tensions.

The California-based company, best known for driving the artificial intelligence (AI) market boom, announced its intention to manufacture a significant share of its semiconductors and electronics within the United States. Huang noted that Nvidia expects to allocate around $500 billion in total procurement over this period, with a substantial portion directed towards domestic manufacturing.

Huang’s comments highlight how shifting US trade policies and rising tensions in the Asia-Pacific region are influencing global companies to reconsider their operations. Nvidia, like many of its American counterparts, has long depended on Taiwanese firms such as TSMC and Foxconn for chip manufacturing. Concerns over trade wars and China’s territorial claims on Taiwan, combined with risks such as earthquakes in the region, have pushed the company to diversify its supply chains.

Huang expressed confidence in Nvidia’s strategy, emphasising that the company is well-positioned to adapt even if the situation in Taiwan deteriorates. He added that this move towards onshoring will enhance Nvidia’s supply chain resilience, especially as demand for AI chips continues to surge. Recent developments, like TSMC’s $100 billion investment in US-based facilities, have already enabled Nvidia to produce Blackwell chips, its most advanced graphics processing units, domestically.

The scaling up of US manufacturing also aligns with the Trump administration’s “America First” approach, as policymakers aim to strengthen domestic industries while reducing reliance on foreign production. Huang highlighted how critical support from the government has been, especially in tackling the energy challenges posed by power-intensive AI chip production in data centres. He further pointed out that competition with China is intensifying, with companies like Huawei continuing to dominate despite US-led efforts to restrict its growth.

As Nvidia’s valuation soars to $2.9 trillion, its focus on manufacturing within the US signals a dramatic shift for the broader tech sector. This move reflects the growing strategic importance of securing supply chains and staying ahead in the increasingly competitive global AI market.