Nvidia (NVDA, Financials) said it plans to manufacture as much as $500 billion worth of artificial intelligence servers in the United States over the next four years, a shift that aligns with broader efforts by American technology firms to bring production back home amid rising trade tensions.

The initiative will involve partnerships with Taiwan Semiconductor Manufacturing Company (TSM, Financials), Foxconn and Wistron. According to the company, TSMC has started producing its latest-generation Blackwell AI chips at a facility in Phoenix, Arizona, while supercomputer production will begin in Texas within the next 12 to 15 months.

The move comes as President Donald Trump's administration pushes U.S. tech companies to increase domestic manufacturing in response to national security concerns and proposed tariffs on Chinese imports. Most of Nvidia's chips are currently produced in Taiwan.

Nvidia Chief Executive Officer Jensen Huang said domestic manufacturing will support surging demand, bolster the supply chain and improve production resilience. The company estimated the effort will create hundreds of thousands of jobs over the next several decades.

Trump responded to the announcement during a White House briefing, attributing the timing to the upcoming U.S. presidential election and newly proposed tariffs. Earlier this week, the United States exempted certain electronics such as smartphones and chips from tariff increases, though a rate for imported semiconductors is expected to be announced within days.

D.A. Davidson analyst Gil Luria said the company's manufacturing plan was likely influenced by political pressure. He cast doubt on the $500 billion estimate, likening it to Apple's (AAPL, Financials) earlier pledge to invest a similar amount in U.S.-based projects.

In March, Huang had indicated that Nvidia saw minimal short-term effects from potential tariffs, but said the company would consider shifting production to the U.S. over the long term. The timing of the announcement follows growing scrutiny of U.S. reliance on foreign chipmakers, particularly from China and Taiwan, amid a global AI race.

The company said the Arizona facility is already operational for its newest chips, and preparations are underway to expand supercomputing capacity domestically with the help of its manufacturing partners.