Nvidias 500bn Plan To Manufacture AI Supercomputers In America Signals Tech Manufacturing Shift

American semiconductor powerhouse Nvidia has unveiled plans to invest up to £500 billion in domestic supercomputer manufacturing facilities, marking a significant shift in US technology production strategy. The move comes as mounting pressure from the Trump administration pushes for increased domestic manufacturing capabilities.

The £2.7 trillion chipmaker has secured more than a million square feet of manufacturing space in Texas, establishing strategic partnerships with Taiwanese electronics manufacturers Foxconn in Houston and Wistron in Dallas. Production at both facilities is projected to commence within 12 to 15 months.

Jensen Huang, Nvidia’s co-founder and chief executive, emphasised the strategic importance of the move, stating, “The engines of the world’s AI infrastructure are being built in the United States for the first time.” He highlighted that American manufacturing would enhance the company’s ability to meet surging AI chip demand while strengthening supply chain resilience.

The development follows similar commitments from tech giants, with Apple pledging half a trillion dollars in US investments over four years, Microsoft allocating £80 billion for 2025, and Meta announcing up to £65 billion in spending, including a substantial data centre project in Louisiana.

Industry analyst Gil Luria from DA Davidson suggests the move was largely influenced by political pressure, noting, “It is unlikely Nvidia would have moved any production to the US if it was not for pressure from the Trump administration.” The announcement comes amid ongoing discussions about potential tariff exemptions for electronics imports, though Trump has indicated that overseas-manufactured electronics may still face significant duties.

Nvidia’s market position has seen recent volatility, with its valuation dropping by approximately £600 billion following advances by Chinese AI start-up DeepSeek and uncertainty surrounding Trump’s global tariffs. The company’s shares reflected market concerns, declining 0.28 per cent to $110.62 in New York trading.