Jensen Huang, chief executive of Nvidia, confirmed at GTC 2025 that the company plans to spend hundreds of billions of dollars on chips made in the U.S. over the next four years, reports the Financial Times. This decision comes as the company works to lessen its reliance on Asian manufacturing due to potential tariffs under the Trump administration and geopolitical instability surrounding Taiwan. The company is also producing Blackwell systems in the US.
Nvidia to spend hundreds of billions on American chips
"We are in it," Huang said at a GTC press conference, answering a question about production at TSMC Arizona, reports Reuters. "We are now running production silicon in Arizona." Huang also confirmed to the Financial Times that Blackwell systems are being produced in the US.
Huang did not elaborate on which chips are being manufactured at TSMC’s Fab 21 in Arizona, nor did he disclose volumes that Nvidia is producing there. The phrase ‘running production silicon’ means that actual chips (not test or prototype chips) are being manufactured. It does not necessarily imply high-volume production.
But while the volumes of Nvidia’s chips made in the U.S. remain unclear, Nvidia is set to increase manufacturing in America over the course of the next four years.
“Overall, we will procure, over the course of the next four years, probably half a trillion dollars’ worth of electronics in total,” Jensen Huang told the Financial Times. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the U.S.”
It should be noted that while unit sales of discrete GPUs for client PCs are generally decreasing, the die sizes of flagship graphics processors are increasing, so the silicon real estate that Nvidia produces is also expanding. Additionally, sales of Nvidia’s gigantic data center GPUs are on the rise, and the company expects this to continue for the next several years. Therefore, it is not surprising that the company plans to spend roughly $500 billion on chips in the next four years.
Nvidia is mostly known for its GPUs for client PCs and data centers. In addition to GPUs, Nvidia also designs its own CPUs, DPUs, NVLink switches, networking chips, and system-on-chips (SoCs) for vehicles as well as various embedded applications. The vast majority of Nvidia’s silicon is produced by TSMC, though some chips are made by other foundries.
However, Nvidia’s products and Nvidia-based products also use numerous other chips not designed by Nvidia or produced by TSMC.
For example, the company uses CPUs developed by AMD and Intel, as well as GDDR and HBM memory made by Micron, Samsung, and SK hynix. It also uses a variety of components from other suppliers, including retimers, system management controllers, clock generators, power management ICs, analog devices, and various controllers/microcontrollers, to name a few.
Companies producing memory (Micron, SK hynix) and other components (Analog Devices, GlobalFoundries, Texas Instruments) are all building new production capacity in the U.S. (Micron’s fab is coming online in 2027, SK hynix is expected to follow in 2028, and TI’s SM1 fab is expected to be operational in 2025).
As a result, Nvidia may increasingly source these components from American facilities. Furthermore, Nvidia’s next-generation x86 servers will use AMD or Intel CPUs that could be produced by either TSMC in Arizona or Intel in Arizona.
That said, with the expanded production of semiconductors in the U.S., it would not be surprising if Nvidia spent several hundred billion dollars on silicon made in America in the coming years. However, a key question is whether by ‘hundreds of billions’ Jensen Huang meant closer to $125 billion or between $250 billion and $300 billion, as many new fabs in the U.S. are coming online in the latter half of the decade.
