Nvidia Begins Domestic AI Chip Production to Strengthen Supply Chain Amid Tariff Concerns

Nvidia has started manufacturing its advanced Blackwell AI chips in the US—specifically at TSMC facilities in Arizona—while planning to build supercomputers in Texas. This move, which predates recent tariff concerns under President Donald Trump, aims to bolster the resilience and diversity of the semiconductor supply chain, which is historically concentrated in Asia. While recent tariffs threaten higher costs for electronics imports, onshoring chip production could offer some protection, though the process is slow and significant price impacts may persist. Other major chipmakers, like AMD, are following suit in response to evolving trade policies and government initiatives such as the 2022 CHIPS Act, designed to encourage domestic chip production.

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