Nvidia plans to manufacture its next generation of AI chips and supercomputers entirely in the US – a first for the company.

The company plans over a million square feet of new manufacturing space in Arizona and Texas, with production already underway for its latest Blackwell chips and mass production of AI systems expected in the next 12 to 15 months.

The move comes amid rising demand for AI hardware and an economic imperative to bring advanced chip production to the US. Nvidia’s expansion also reflects a broader shift in the tech industry to bolster supply chains for high-performance computing. The company says it expects to support up to half a trillion dollars-worth of AI infrastructure in the next four years, working with partners such as TSMC, Foxconn, Wistron, Amkor, and SPIL.

The shift to a US base for production could have implications for cryptocurrency miners, many of whom are exploring new roles in the AI economy. Some miners that already have access to power-dense facilities are re-purposing their infrastructure to support AI workloads and high speed computing. The overlap in technical requirements, like cooling and electricity supply, places them as potential players in what Nvidia refers to as a generation of “AI factories.” Miners’ operational experience and current infrastructure give them a foothold as demand for AI compute grows. However, changes in US trade policy introduce new challenges.

Recent tariff measures imposed by president Trump are putting more pressure on the sector, particularly for miners who rely on imported ASIC hardware and electrical components. Before a 90-day pause was announced, the administration had proposed sweeping tariffs on dozens of countries, including rates of up to 36% on Malaysia, 32% on Indonesia, and 24% on Thailand – all major hubs for ASIC production. A temporary reprieve has lowered the rate to 10%, but the unpredictability of future adjustments has already disrupted operations.

Some miners are rushing to import necessary equipment into the US ahead of the deadline, chartering cargo flights at significantly elevated costs. Tariffs on raw materials like aluminium and circuit board components are projected to raise the cost of domestically-assembled equipment. The new costs could limit US miners’ expansion plans and shift competitiveness toward international operators in Canada, Europe, and parts of South America.

Industry analysts say the impact on mining could be as significant as the 2021 ban on the activity in China, which triggered a global redistribution of hash power. With the US accounting for around 35 – 40% of the world’s Bitcoin mining, the changes are likely to reshape where and how mining infrastructure is deployed in the coming years.

Meanwhile, Nvidia is enlarging its footprint. In Texas, supercomputer factories are under construction with Foxconn in Houston and Wistron in Dallas, with full-scale production envisaged in 12 to 15 months.

This marks a shift for Nvidia (in line with today’s US policy), which has previously relied on overseas manufacturing units. The company says its US-based operations are part of its broader plan to meet surging demand for AI infrastructure.

(Photo by Unsplash)

See also: Cryptocurrency stocks fall following US tariff escalation

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