Chalk up a win for Trump and Biden. It’s on strategic trade policy that I support.

NVIDIA Blackwell Chip Production Starts in Arizona

NVVDIA reports Blackwell Chip Production Starts in Arizona

NVIDIA is working with its manufacturing partners to design and build factories that, for the first time, will produce NVIDIA AI supercomputers entirely in the U.S.

Together with leading manufacturing partners, the company has commissioned more than a million square feet of manufacturing space to build and test NVIDIA Blackwell chips in Arizona and AI supercomputers in Texas.

NVIDIA Blackwell chips have started production at TSMC’s chip plants in Phoenix, Arizona. NVIDIA is building supercomputer manufacturing plants in Texas, with Foxconn in Houston and with Wistron in Dallas. Mass production at both plants is expected to ramp up in the next 12-15 months.

The AI chip and supercomputer supply chain is complex and demands the most advanced manufacturing, packaging, assembly and test technologies. NVIDIA is partnering with Amkor and SPIL for packaging and testing operations in Arizona.

Within the next four years, NVIDIA plans to produce up to half a trillion dollars of AI infrastructure in the United States through partnerships with TSMC, Foxconn, Wistron, Amkor and SPIL. These world-leading companies are deepening their partnership with NVIDIA, growing their businesses while expanding their global footprint and hardening supply chain resilience.

NVIDIA AI supercomputers are the engines of a new type of data center created for the sole purpose of processing artificial intelligence — AI factories that are the infrastructure powering a new AI industry. Tens of “gigawatt AI factories” are expected to be built in the coming years. Manufacturing NVIDIA AI chips and supercomputers for American AI factories is expected to create hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, founder and CEO of NVIDIA. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”

The company will utilize its advanced AI, robotics and digital twin technologies to design and operate the facilities, including NVIDIA Omniverse to create digital twins of factories and NVIDIA Isaac GR00T to build robots to automate manufacturing.

How This Started

One thing Biden did correctly was secure a deal that brought TSMC production to Arizona.

Here’s the November 2024 announcement: Biden-Harris Administration Announces CHIPS Incentives Award with TSMC Arizona to Secure U.S. Leadership in Advanced Semiconductor Technology

“Two years ago, shortly after I signed the CHIPS & Science Act, I visited Arizona to announce a commitment by TSMC to invest in America, create American jobs, and shore up American supply chains. On that day, I spoke about how the United States invented semiconductors and used to manufacture nearly 40% of the world’s chips, but now makes closer to 10% of them and none of the most advanced chips. I came to office determined to change that, and we have since delivered on that promise, catalyzing nearly $450 billion in private investment in semiconductors, creating over 125,000 new construction and manufacturing jobs, and reshoring critical technologies to bolster our national and economic security,” said President Joe Biden.

Biden signed the Chips & Science Act in 2022.

While the Inflation Reduction Act (IRA) was less than useless, credit for the Chips & Science Act that brought TSMC to Arizona goes to Biden.

It was only one of two thing Biden got correctly. The other was leaving Afghanistan. Biden botched the exist, but at least he got it done. Trump promised and failed.

Note that Trump trashed Biden for paying to get TSMC in the US. But without that start from Biden, today’s announcement would not be happening.

My Stated Position on Tariffs and Subsidies

I have stated multiple times that the only times tariffs or subsidies that make sense are on items of strategic concern.

Semiconductors, AI, and rare earth elements are in the strategic items list. Items not in strategic group include steel, coal, aluminum, underwear, and cars. Many strong allies produce steel, aluminum, and cars.

Understanding this Win

The policies that produced this win are a combined effort by Trump and Biden. And they are policies that I have previously supported.

I care about the constitution and results, not political parties.

Congrats to Trump and Biden.

Related Posts

April 13, 2025: China Halts Rare Earth Exports Desperately Needed by the US

I have been warning about this for years. It’s now happening.

April 14, 2025: Say goodbye to Cheap Socks and Other Apparel, We Call This Winning

You pay more and get less, but Trump calls it winning.

April 14, 2025: Trump’s Plan to Make Manufacturing Great Again in Pictures

The share of manufacturing employment keeps declining. What role did NAFTA play?

Trump should work out a deal on rare earths with Canada.

Instead, he threatens Greenland and destroyed our relationship with Canada, the best trade relationship in the world.

For discussion, please see Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

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