Nvidia to invest billions in US chip manufacturing

Nvidia plans to invest hundreds of billions of dollars in U.S. chip and electronics manufacturing over the next four years. This decision comes as the company shifts its supply chain back from Asia, influenced by trade policies from former President Donald Trump. The announcement was made by Jensen Huang, Nvidia's CEO. He projected that the company would spend about half a trillion dollars on electronics, with a significant portion manufactured in the U.S. This strategy follows similar commitments by other tech giants, such as Apple. During an interview, Huang mentioned that Nvidia can now produce its latest systems in the U.S. with help from suppliers like Taiwan Semiconductor Manufacturing Company (TSMC). He expressed concerns about competition from Chinese company Huawei, noting its advances in the AI chip market. At Nvidia's annual developers' conference, Huang introduced the Vera Rubin AI chip. He plans to develop large clusters of interconnected chips for data centers that will require substantial power. Huang believes that support from the current U.S. administration will boost the country's AI industry. He highlighted TSMC's recent $100 billion investment in Arizona as a critical move for improving the supply chain. Many U.S. tech companies, including Nvidia and Apple, have relied heavily on TSMC's facilities in Taiwan. However, tensions with China and risks of natural disasters in Taiwan have raised concerns about this dependency. Huang stated that Nvidia is now more prepared for potential disruptions. Export controls on Nvidia's advanced chips to China are set to tighten in May. Huang acknowledged that despite these restrictions, competition from Huawei presents significant challenges for Nvidia in the AI space. Meanwhile, Intel, the only major U.S. company capable of producing similar chips, has experienced difficulties recently. Huang noted that Nvidia is monitoring Intel's foundry technology but clarified that they are not currently in talks to form a consortium with Intel. Huang expressed confidence in Intel’s future competitiveness and emphasized the importance of its success. Building a new supply chain in the U.S. will take time, but he believes it is essential for long-term growth.