Nvidia Corp. aims to spend several hundred billion dollars to procure US-made chips and electronics over the next four years, the Financial Times reported.
Chief Executive Officer Jensen Huang told the FT that the latest chips designed by his company, and Nvidia-powered servers for data centers, can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. It marked a major step forward in supply chain resilience for the Santa Clara, California-based chipmaker, Huang added.
Nvidia this week hosted its GTC developer conference, where Huang, 62, said his company ultimately plans to shift manufacturing onshore. It’s already using TSMC’s Arizona factory to help produce some of its highly prized graphics processing units, which have become the most essential component for the current wave of AI investment.
Shares in TSMC and other Nvidia suppliers, such as SK Hynix Inc. in South Korea, rose in the wake of the report. In its 2024 annual report, Nvidia said it had $20 billion in total future purchase commitments as of January 28, 2024.
Huang, who in January met President Donald Trump, lauded the new administration’s support for the developing artificial intelligence sector and told the FT it was “a phenomenal result for AI in the US.” He also praised TSMC — the sole manufacturer for Nvidia’s most advanced AI chips — for expanding its investment in the US.
TSMC, Taiwan’s most valuable company, and its peers are rapidly making the US the top priority of their expansion plans, as tariff threats by the Trump administration hasten plans to set up in the country. TSMC CEO C.C. Wei this month announced an additional $100 billion in investment in the US, alongside Trump in the White House, and Foxconn is working with Apple Inc. to add an AI server assembly site in Texas.
Bloomberg’s Mike Shepard reports.
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source
date: 2025-03-20 17:06:35
duration: 00:05:34
author: UChF5O40UBqAc82I7-i5ig6A
Here is a summary of the transcript in 300 words for an average intelligent interested reader:
Nvidia, a leading AI chip manufacturer, is planning to spend billions on US-made electronics, according to a recent announcement. This move comes at a crucial time for the company, as it faces uncertainty about the future of the AI boom. Jensen Huang, Nvidia’s CEO, has been vocal about the company’s plans to continue scaling up its production of AI chips, despite concerns about the need for such chips in the face of cheaper, smaller accelerators and processors.
The announcement has sent waves through the tech community, with some expressing concerns about the impact on the global supply chain. Taiwanese officials, however, have welcomed the move, seeing it as a positive development that will add to the country’s capabilities and resilience. The ambassador to Taiwan emphasized that this is a “win-win” for both the US and Taiwan, as it will enhance trade relations and add to the country’s manufacturing capabilities.
Jensen Huang’s leadership style has been particularly notable, with some describing him as an “elusive” and “low-profile” CEO who maintains a distance from Washington politics. His approach has allowed him to maintain a level of independence and focus on his company’s goals, rather than getting sucked into the political fray.
The announcement also has implications for the DeFi (Decentralized Finance) space, as it highlights the need for robust supply chains and manufacturing capabilities in the tech industry. It also speaks to the ongoing competition between the US and China, with the US seeking to strengthen its position in the global tech industry.
Overall, the announcement is significant not only for its potential impact on the AI industry but also for its implications for global trade and the competition between major powers.
