Nvidia has announced a major initiative to produce AI supercomputers in the US in collaboration with Taiwan Semiconductor Manufacturing Co. (TSMC) and several other partners.

The effort aims to create up to US$500 billion worth of AI infrastructure products domestically over the next four years, marking a significant shift in Nvidia's manufacturing strategy.

Alongside TSMC, other key contributors include Taiwanese firms Hon Hai Precision Industry Co. and Wistron Corp., both known for producing AI servers. US-based Amkor Technology and Taiwan's Siliconware Precision Industries will also provide advanced packaging and testing services.

Nvidia's Blackwell AI chips have already begun production at TSMC's Arizona facility, with large-scale operations planned in Texas through partnerships with Hon Hai in Houston and Wistron in Dallas.

The move could impact Taiwan's economy, as many Nvidia components are currently produced there. Taiwan's Economic Affairs Minister declined to comment specifically on the project but assured that the government will monitor overseas investments by Taiwanese firms.

Nvidia said the initiative would help meet surging AI demand while strengthening semiconductor supply chains and increasing resilience amid shifting global trade policies, including new US tariffs on Taiwanese exports.

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