Nvidia to spend hundreds of billions on US supply chain: FT
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The news: Nvidia boss Jensen Huang shared plans to spend hundreds of billions of dollars on manufacturing chips and electronics in the US over the next four years. The move would refocus its supply chain away from Asia as President Donald Trump’s tariffs push the semiconductor giant's operations toward the US.
The context: Speaking to the Financial Times, Huang said “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.”
The risk profile for large US tech companies like Nvidia becoming heavily reliant on Taiwan Semiconductor Manufacturing Company’s (TSMC) chipmaking output in Taiwan is growing, given intensifying aggression from China and Trump’s tariff threats on Taiwanese semiconductors.
Huang told the masthead that “at this point, we know that we can manufacture in the US, we have a sufficiently diversified supply chain,” and if any disaster were to threaten production in Taiwan, “it will be uncomfortable but it should be OK”.
Earlier this week, the chipmaker unveiled plans for "personal AI supercomputers", a new platform to "supercharge humanoid robot development", and an "AI-native" wireless network hardware for new 6G networks, at its annual GTC event in California.
Speaking on AI, Huang said that he expects the Trump administration to accelerate AI in the US, and that the administration’s support for the industry and “not allowing energy to be an obstacle is a phenomenal result for AI in the US.”
The source: Financial Times
