Friday, March 21st 2025
NVIDIA Plans US Supply Chain Investment Worth Hundreds of Billions, "Blackwell" Already Manufactured in Arizona
NVIDIA's CEO Jensen Huang made some interesting commentary for the Financial Times, stating that the company will procure over half a trillion US Dollars worth of electronics over the next four years, and it it plans to keep hundreds of billions from the supply chain procurement in the US. "Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total. And I think we can easily see ourselves manufacturing several hundred billion of it here in the US," said Jensen for FT. NVIDIA currently manufactures its silicon at TSMC's facilities, as well as electronics like motherboards and servers at Foxconn. However, the geopolitical situation is making NVIDIA reconsider its supply chain dependencies, and the company is looking for more US-based manufacturing.
NVIDIA confirmed that its latest "Blackwell" series of GPUs, including the latest Blackwell Ultra, are being manufactured at TSMC's Arizona facilities. TSMC announced a $100 billion investment in its Arizona expansion, and NVIDIA is ready to take up more of TSMC's capacity to meet its ever-growing demand for GPUs. During the GTC 2025 event, Jensen noted that only four cloud service providers will use 3.6 million GPUs this year. That is without any AI labs and enterprises, which are massive consumers of GPUs (xAI only has 200,000 GPU clusters). To continue manufacturing excellence so customers won't suffer, NVIDIA is also looking at other options for supply chain manufacturing partners. Intel, the only US-based company capable of producing advanced silicon, is a potential target for NVIDIA. "We evaluate their foundry technology on a regular basis, and we are ongoing in doing that... We look for opportunities to be a customer of theirs... I have every confidence that Intel can do it," added Jensen, who also stated that NVIDIA is interested in silicon manufacturing and chip packaging services, as Intel's Foveros 3D packaging and other technologies are attractive for Team Green.
Source:
Financial Times
NVIDIA confirmed that its latest "Blackwell" series of GPUs, including the latest Blackwell Ultra, are being manufactured at TSMC's Arizona facilities. TSMC announced a $100 billion investment in its Arizona expansion, and NVIDIA is ready to take up more of TSMC's capacity to meet its ever-growing demand for GPUs. During the GTC 2025 event, Jensen noted that only four cloud service providers will use 3.6 million GPUs this year. That is without any AI labs and enterprises, which are massive consumers of GPUs (xAI only has 200,000 GPU clusters). To continue manufacturing excellence so customers won't suffer, NVIDIA is also looking at other options for supply chain manufacturing partners. Intel, the only US-based company capable of producing advanced silicon, is a potential target for NVIDIA. "We evaluate their foundry technology on a regular basis, and we are ongoing in doing that... We look for opportunities to be a customer of theirs... I have every confidence that Intel can do it," added Jensen, who also stated that NVIDIA is interested in silicon manufacturing and chip packaging services, as Intel's Foveros 3D packaging and other technologies are attractive for Team Green.
12 Comments on NVIDIA Plans US Supply Chain Investment Worth Hundreds of Billions, "Blackwell" Already Manufactured in Arizona
they better start optimising games better or i won't even buy games anymore if my 3060ti can't play it.
I wouldn't be surprised if instead of next generation in 2 years we only get rebrand of this one? Even Blackwell is for certain models basically just a Lovelace rehash.
But i also won't forget. And it's also fair to point out that Nvidia only exists because penny pinchers like me made them what they are since the riva tnt days, and if the AI crap ends or they find a quantum adamantium nuclear processor or some other shit to do a better job at it, they will need the penny pinchers again.
I bet you the penny pinchers will outlive Nvidia.
People not purchasing new GPUs won't hurt Nvidia even a tiny bit now, with "Gaming and AI PC" less than 6% of the revenue (how much if that is just Gaming?). But people not following hardware upgrades also often don't spend their money on costly new hard to run games, focusing on what they have and maybe rummaging through sales bins for older games they haven't played yet.
But Jacket Man.....not a chance, since he is just an AI-contruct of a so-called real person, which means he/it is eternal, just like their greed ! :roll:
nVidia's revenue for FY 2024 was $60.9 billion. $10.4 billion of that came from the GeForce division. How do you get 6% from that?
investor.nvidia.com/news/press-release-details/2024/NVIDIA-Announces-Financial-Results-for-Fourth-Quarter-and-Fiscal-2024/Riiiiight.....because increasing capacity INCREASES prices. SMH.
I notice this a lot, why is it when someone tries to fix a problem, some people begin pearl clutching about how everything is going to be horrible? It's such a negative way of looking at the world.
But situation is evolving rapidly, and in fourth quarter of 2024, the revenue was$39.3 billion, of which Data Center: $35.6 billion, Gaming and AI PC: $2.5 billion, so 6.36%. And fourth quarter results are usually the highest yearly results for Gaming, with start of the school year, Black Friday and holiday sales.
What school year starts in November?
I’m assuming you missed the part six months ago when Nvidia stated in the financial disclosure that gaming would be down in 4Q25 due to supply constraints also.