Nvidia, a chip designer, has announced plans to invest up to $500 million (£37.8 billion) in artificial intelligence infrastructure in the United States over the next four years. This move comes in response to President Trump’s tariffs, with signs of manufacturers shifting their investments to American businesses.
The decision follows Trump’s recent tariffs on semiconductors, which are primarily produced by Nvidia in Taiwan. The company’s CEO, Jensen Huang, visited the president at Mar-a-Lago earlier this month, prompting repeated threats from Trump. Nvidia aims to establish fully operational “supercomputer” facilities in the US and collaborate with manufacturing partners to construct factories.
Production of the Blackwell graphics processing unit has already commenced at the TSCM’C factory in Phoenix, Arizona. Additionally, new plants are being developed at Foxconn in Houston and Wistron in Dallas, with expectations of increased mass production within the next 12-15 months.
Huang emphasized that enhancing American manufacturing capabilities is crucial for meeting the growing demand for AI chips and supercomputers, thereby strengthening the company’s supply chain and resilience.
The White House hailed Nvidia’s commitment as a result of the “Trump effect.” Nvidia’s stock market value has surged over the years, driven by the demand for AI chips, but faced challenges due to tariff uncertainties resulting in a drop in stock prices.
Global markets reacted cautiously, hoping for some relief from Trump’s new taxes. While markets in Japan and South Korea rose, Hong Kong and China experienced declines. In Europe, markets showed gradual recovery, with the UK’s FTSE 100 index rising, along with Germany’s DAX and France’s CAC.
Trump’s plans to impose tariffs on semiconductor and drug imports have raised concerns. The US Department of Commerce has launched an investigation into the impact on national security. Amidst these decisions, companies like Novartis are investing in the US drug sector to mitigate tariff threats.
Source: www.theguardian.com
