Nvidia starts producing Blackwell AI chips in Arizona

Nvidia just took a major step toward making its AI hardware on American soil.

On Monday, the company announced that it has started producing Blackwell AI GPUs at TSMC’s plant in Phoenix, Arizona, with local packaging and testing partners handling the next steps in the state.

Blackwell goes domestic

It is not just the silicon, either. Nvidia is also teaming up with Foxconn and Wistron to build supercomputer manufacturing plants in Texas, expecting mass production to ramp up over the next 12 to 15 months.

TSMC, which pledged a $100 billion US investment last month, began 4nm production in Arizona back in January and plans to introduce 2nm tech by the end of the decade. Nvidia has not revealed exactly which Blackwell chips are rolling off the Arizona line, or whether the batch includes the new Blackwell Ultra GB300 introduced earlier this year.

Nvidia claims manufacturing AI chips and supercomputers domestically will support hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades.

Why it matters

We think this move is less about shaving costs and entirely about buying supply chain insurance.

Hyperscalers are terrified of geopolitical bottlenecks cutting off their compute supply. By producing chips in Phoenix and assembling clusters in Texas, Nvidia creates a hedge against single-region supply shocks.

That said, nobody should expect Asia's semiconductor footprint to be replaced overnight. Advanced packaging capacity stateside is still finding its footing, and with Texas factories a year or more away from full volume, the vast majority of Blackwell servers will continue to ship from overseas for the foreseeable future.