Leading the way for technological innovation in America, Nvidia has announced that it will begin building AI supercomputers in the country as early as this year. As part of this big plan, the company has acquired a one-million-square-foot manufacturing facility in Phoenix, Arizona. In partnership with TSMC, the facility will be the center of production for Nvidia’s latest Blackwell chips, which are considered a key step in the field of AI and computing.
The Blackwell chips represent Nvidia’s cutting-edge GPU architecture, which is a key part of the RTX 50 series. These chips are expected to further enhance AI applications with high performance and efficiency. Production of these chips has already begun in Phoenix, which is a significant step towards expanding Nvidia’s manufacturing capacity in the US.
Read Also: Windows 10 Update Error 0x80070643: Microsoft Suggests Reboot to Fix Installation Issues
The reasons behind Nvidia’s decision are multifaceted. The recent tariff debate in the US economy, especially the threat of tariffs on smartphones announced by President Trump, appears to have influenced Nvidia’s decision to prioritize local manufacturing. In this volatile economic environment, the company has opted for local production to ensure supply chain stability.
As part of this plan, Nvidia is building two supercomputer plants in Texas, including a collaboration with Foxconn (Houston) and Wistron (Dallas). The company is preparing to ramp up production over the next 12 to 15 months. Together with partners such as TSMC, Foxconn, Wistron, Amkor, and SPIL, Nvidia plans to invest approximately $500 billion in AI infrastructure.
Nvidia founder and CEO Jensen Huang said, “Local manufacturing capacity will play a key role in meeting the growing demand for AI chips and supercomputers. It will not only strengthen our supply chain but also increase resilience.” he said. He expressed confidence that this move will further strengthen Nvidia’s leadership in the AI space.
Read Also: Apple iPad gets a new lease of life: Will iPadOS 19 become a game-changer?
In economic terms, Nvidia’s investment is expected to create millions of jobs and boost economic security by trillions of dollars over the coming decades. However, while these projections are optimistic, there are also concerns that Nvidia’s plants, which rely heavily on automation, may not create the jobs they envision.
Cutting-edge technologies will play a prominent role in Nvidia’s manufacturing facilities. The company will design and operate these plants using its AI, robotics, and digital twin technologies. In particular, the Nvidia Omniverse platform will simulate industrial and robotic use cases, which will improve the efficiency of manufacturing processes.
In addition, Nvidia is developing general-purpose robots using its GROOT platform that will automate manufacturing processes in plants. This automation strategy has the potential to reduce production costs and increase the availability of GPUs, but its impact on job creation is still under debate.
According to the World Economic Forum's 2025 Future of Jobs report, AI is expected to create 11 million jobs while displacing 9 million. The report also suggests that there could be a net loss of 5 million jobs in the robotics sector. While this new initiative by Nvidia will contribute to economic growth, its impact on the job market requires a balanced approach.