Nvidia Shifts AI Chip Production to U.S. Amid Geopolitical Tensions
Nvidia CEO Jensen Huang announced the company has begun manufacturing its flagship Blackwell AI GPUs in Arizona, marking a strategic shift from Taiwan-based production. The move follows direct appeals from former President TRUMP to bolster domestic semiconductor capabilities, aligning with national security objectives and job creation initiatives.
Concurrently, Nvidia revealed a $1 billion investment in Nokia to develop U.S.-built 5G/6G infrastructure using its ARC platform. This partnership aims to reduce foreign tech dependence in critical telecommunications infrastructure, with Huang positioning AI-powered 6G as an enabler for advanced robotics and climate modeling applications.
The production relocation comes as Nvidia contends with U.S. export restrictions that reportedly cost $10.5 billion in potential Chinese sales of H20 chips. The Blackwell transition demonstrates how geopolitical factors are reshaping global tech supply chains.