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Nvidia plans to accelerate investment in Arizona to address AI chip supply-demand gap
Friday, January 16, 2026 at 11:54 PM
Jensen Huang confirmed plans to continue and potentially accelerate investment in Arizona to meet growing AI infrastructure demand. He highlighted that capital expenditure expansion in the United States and Taiwan is driven by strong belief in the AI trend, aiming to close the supply-demand gap.
Context
Nvidia CEO Jensen Huang recently confirmed plans to accelerate capital investment in Arizona to resolve the persistent supply-demand gap for AI processors. During a recent interview, Huang emphasized a commitment to domestic manufacturing, noting that the company aims to produce $500 billion in AI infrastructure within the United States over the next four years. This strategy centers on a deepening partnership with TSMC, which recently reached a milestone by beginning volume production of Nvidia Blackwell chips at its Phoenix facility.
The transition to U.S.-based manufacturing is a strategic pivot to harden supply chain resilience against geopolitical risks while meeting surging global demand. While TSMC currently utilizes its 4nm process in Arizona, the roadmap includes expanding to 2nm and A16 nodes by the end of the decade. Beyond silicon, Nvidia is also commissioning over one million square feet of manufacturing space in Texas and Arizona, collaborating with partners like Foxconn and Amkor to establish a fully integrated domestic AI technology stack.
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