Nvidia’s $500B US AI Investment Credited to ‘Trump Effect,’ Says White House

Key Takeaways

• Nvidia has announced plans to significantly expand U.S. manufacturing.
• Foxconn and TSMC will manufacture Nvidia components in Arizona and Texas.
• In a statement, the White House called Nvidia’s $500 billion investment an example of the “Trump Effect.”

On Monday, April 16, Nvidia announced a major expansion of its U.S. manufacturing operations as it plans to invest $500 billion in new AI infrastructure across the country.

The Trump administration has pointed to the announcement as proof that its economic and trade policies —dubbed the “Trump Effect”—are driving a resurgence in American industry.

Americanizing Nvidia’s Supply Chain

Monday’s announcement highlights a concerted effort by Nvidia to reshore parts of its supply chain to the U.S.

Already, the firm said it has started producing Blackwell AI processors at a foundry operated by Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona.

Moving forward, Nvidia is also partnering with Amkor and SPIL to conduct packaging and testing operations in the state.

The company also revealed plans to build two new plants in Texas that will assemble AI supercomputers—one with Foxconn in Houston and another with Wistron in Dallas.

Through these partnerships, Nvidia said it plans to produce up to half a trillion dollars of made-in-America AI infrastructure in the next four years.

Nvidia and U.S. Tariffs

Although Nvidia didn’t directly connect the planned investment to government policy, it is one of the companies most threatened by Trump’s tariffs.

For now, semiconductors are exempt from tariffs, but the administration has vowed to introduce “sectoral tariffs” on the industry as soon as this week.

Currently, Nvidia relies heavily on TSMC’s Taiwan-based plants and Foxconn’s factories in China, Mexico and elsewhere. As the global trade war escalates, such international manufacturing operations could soon incur significant costs.

Relocating production lines to the U.S. won’t make tariffs disappear. But as Nvidia looks to diversify its global supply chain in the Trump era, establishing an American manufacturing base makes a lot of sense.

White House Claims ‘American Manufacturing Renaissance’

Following Nvidia’s announcement, the White House issued a statement claiming that “it’s the Trump Effect in action.”

“President Donald J. Trump has made U.S.-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing renaissance.”