The move brings the AI chip giant—whose processors are primarily manufactured in Taiwan, in line with several tech companies that have committed to reshoring production to the U.S. amid President Donald Trump's threat of steep tariffs.
“Nvidia likely wouldn’t have shifted any production to the U.S. without pressure from the Trump administration,” said Gil Luria, analyst at D.A. Davidson.
He added, “The $500 billion figure is probably exaggerated, much like Apple’s similarly bold promise.”
In February, Apple (AAPL.O), which assembles the majority of its iPhones in China, pledged $500 billion in U.S. investments over the next four years, including the development of an AI server factory in Texas.
Nvidia’s announcement follows just hours after the U.S. granted exemptions for electronics like smartphones and chips from its retaliatory tariffs on China, while noting that the tariff rate on imported chips will be revealed in the coming week.
Nvidia CEO Jensen Huang said, “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency.", reported Reuters.
Trump also said that Nvidia’s announcement during a briefing in the White House was that “The reason they did it is because of the election on November 5, and because of the thing called tariffs,".
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