Leading artificial intelligence chip maker Nvidia (NASDAQ:NVDA) plans to invest hundreds of billions of dollars in the U.S. supply chain over the next four years. CEO Jensen Huang told the Financial Times that the increased U.S. production was being made possible thanks to suppliers such as the Taiwan Semiconductor Manufacturing Company (NASDAQ:TSM) and Foxconn (NASDAQ:FXCOF).

“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 FT. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the U.S.”

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Available Energy: A Crucial Factor

Huang, speaking on March 18 during his company’s GTC convention, believed the Trump administration’s “America First” policy would enable his company to ramp up chip production in the U.S. 

“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 told the FT.

Nvidia Part Of A U.S. Onshore Tech Explosion

Huang’s sentiments follow pledges by other tech companies to onshore manufacturing in the U.S. rather than overseas. Apple has committed to spending $500 billion in the U.S. over the next four years, expanding teams and facilities in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. 

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TSMC has already committed a $100 billion investment in a chip fabrication plant in Arizona, which President Donald Trump has said would create thousands of jobs bringing Taiwan Semiconductor’s investment to "about $165 billion."

“TSMC investing in the U.S. provides for a substantial step up in our supply chain resilience,” Huang told the FT. 

Pledging To Build In The U.S.: A Hedge Against Tariffs

TSMC’s Taiwan-based production facilities have been an increasingly pivotal part of Nvidia and Apple’s manufacturing process, which Trump was once keen to change, previously threatening to impose tariffs on Taiwan. By pledging to build new facilities in the U.S., Trump said that Taiwan avoided a 25% tariff. 

“TSMC already has plants in the US and Japan, and it’s now building a new plant in Germany,”  Taiwanese presidential office spokesperson Karen Kuo told the Guardian. “These have nothing to do with tariffs. TSMC’s global expansion is a crucial development.”

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Data Center Revolution Amid AI Arms Race

Trump has been basking in a wave of tech commitments to manufacture products in the U.S.

“GE Aerospace (NYSE:GE) announced on Tuesday a nearly $1 billion investment in U.S. manufacturing, the latest company to do so under the Trump administration... It marks the latest company to put money back into the U.S. economy,” Trump said. 

Other tech companies or those that finance them have also announced big U.S.-based investments. Meta (NASDAQ:META) has announced a $65 billion investment, most of which will be used to construct new data centers to fuel its AI operations. This follows investments from Google, Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) in data centers as the AI arms race heats up. 

Trump has announced a joint venture between OpenAI, SoftBank, and Oracle (NYSE:ORCL) called Stargate, which aims to invest at least $100 billion in U.S. data centers. Many of these data centers will house the incredibly powerful GPU computers powering the AI revolution. Nvidia currently has between 70% and 95% of the AI chip market used in GPUs.

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