Facing the looming threat of a trade war fueled by U.S. tariffs on foreign goods, chipmaker Nvidia is moving part of its AI supercomputer manufacturing operations stateside. The company  said Monday it plans to invest $500 billion in infrastructure development in the United States.

Nvidia’s announcement reflects growing pressure on U.S. tech firms to localize production amid rising tariffs and escalating tensions with China. The company said that Nvidia is developing manufacturing spaces in Phoenix, Arizona, as well as in Dallas and Houston, Texas, to house its Blackwell chip and AI supercomputer operations.

“The engines of the world’s AI infrastructure are being built in the United States for the first time,” founder and CEO of Nvidia Jensen Huang said in a statement. “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.”

According to Nvidia, the combined size of the facilities will cover one million square feet. Nvidia said production at each location will ramp up in the next two years, with the goal of producing half a trillion in AI infrastructure in the United States.

Until now, Nvidia has relied heavily on overseas manufacturing, particularly in Taiwan. Partners developing the new locations with Nvidia include Foxconn, Wistron, and Taiwan Semiconductor Manufacturing Company, which manufactures Nvidia’s advanced computer chips, including the new Blackwell chip.

Nvidia’s stock dipped slightly on Monday. It began the day trading at $113 and slid under $110 at one point before rising more recently to above $111.70, up .75%, according to Yahoo Finance.

The announcement quickly drew praise from the Trump Administration, which tied the move to its broader push for domestic manufacturing, calling it the “Trump effect in action.”

“President Donald J. Trump has made U.S.-based chips manufacturing a priority as part of his relentless pursuit of an American manufacturing renaissance, and it’s paying off — with trillions of dollars in new investments secured in the tech sector alone,” the White House said in a statement.

In January, Trump announced a new AI initiative called Stargate, led by Oracle, OpenAI, and Softbank. The Stargate project would invest $500 billion in AI infrastructure in the United States.

“Onshoring these industries is good for the American worker, good for the American economy, and good for American national security — and the best is yet to come,” the White House said.

Nvidia did not respond to requests for comment by Decrypt.

Edited by James Rubin