Nvidia has announced plans to manufacture its next-generation AI chips, codenamed Blackwell, in the United States, marking a significant shift in its production strategy. The company will partner with semiconductor manufacturers in Arizona and other locations to produce these advanced AI processors, with production scheduled to begin in 2025. This move represents Nvidia’s response to growing concerns about supply chain security and increasing government pressure to boost domestic chip manufacturing. The Blackwell chips are designed to power the next generation of AI supercomputers and are expected to be significantly more powerful than their current H100 processors. The decision to manufacture in the US aligns with the CHIPS Act initiatives and demonstrates Nvidia’s commitment to strengthening domestic semiconductor capabilities. The company plans to work with multiple manufacturing partners, including TSMC’s Arizona facility, to ensure a robust and diversified supply chain. This strategic decision comes at a time when Nvidia dominates the AI chip market with an estimated 80% share, and demand for AI processors continues to surge. The move is expected to create new jobs in the US semiconductor industry and potentially help reduce dependency on foreign chip manufacturing. This development also signals a broader trend of tech companies bringing critical manufacturing operations back to American soil, particularly for AI-related technologies that are deemed strategically important.