NVIDIA Plans to Invest “Hundreds of Billions” in US-Made Chips; Jensen Aims for Partnership with Intel Foundry

NVIDIA’s CEO has reaffirmed the company’s pledge to bolster the US semiconductor industry, announcing plans to invest “billions of dollars”in the production of domestically manufactured chips.

NVIDIA’s Vision for a Resilient US Chip Industry

With the significant policy shifts initiated during the Trump administration, major US technology firms are increasingly embracing the concept of domestic chip production. Notably, companies like TSMC are now considering establishing manufacturing plants within the United States. In a recent interview with the Financial Times, NVIDIA’s Jensen Huang emphasized that his company aims to be a pivotal customer for US-made chips, potentially facilitating the production of “hundreds of billions”worth of artificial intelligence hardware right on American soil.

Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total. And I think we can easily see ourselves manufacturing several hundred billion of it here in the US.

Diversifying Supply Chains to Mitigate Risks

The surge of interest in domestic semiconductor manufacturing stems from the realization that reliance solely on Taiwanese production is risky. Amid regional tensions, global companies sourcing chips from Taiwan face significant supply chain vulnerabilities. By investing in US production capabilities, tech firms can create a more resilient supply chain, thereby reducing risks associated with geopolitical instability.

The most important thing is to be prepared. At this point, we know that we can manufacture in the US, we have a sufficiently diversified supply chain.

–Jensen Huang

Future Collaborations: NVIDIA and Intel Foundry

In addition to their commitments, Huang also hinted at potential collaborations with Intel’s Foundry Services (IFS), expressing optimism about their progress. He noted that NVIDIA is keen to explore opportunities as a customer of Intel, particularly as IFS strives for breakthroughs in production capabilities. This indicates that NVIDIA is open to sourcing semiconductors from multiple US facilities, showcasing a strategic approach to diversifying its semiconductor sources beyond traditional partners like TSMC.

NVIDIA's First Blackwell GB200 NVL72 Server Racks Shipped Amidst Reports of Thermal Issues 1

Bright Prospects for the US Semiconductor Industry

The future of the US semiconductor sector appears promising. As developments continue in both policy and industry investment, we may soon witness the emergence of advanced chip manufacturing within the country, ultimately contributing to the nation’s technological independence.

Source & Images