TECH NEWS – Nvidia CEO Jensen Huang says US manufacturing should be a priority for the company.

Huang says the Trump tariffs won’t have a significant impact in the short term, and that the company is working with partners to bring manufacturing to the US. In fact, the imposition of new tariffs sent markets into a panic as it was assumed that there would be disruptions in the global supply chain. Among the companies affected by the US president’s policy, Nvidia was the one that was said to be significantly affected given its presence in markets like China, but Huang said in an interview with CNBC that the tariffs would not have a major impact on Nvidia’s operations: “We are enthusiastic about building in America anyway. We are working with TSMC to get them ready to make chips in the U.S. In the short term, the impact of the tariffs won’t be significant,” Huang said.

One of the goals of Trump’s tariff policy is to bring semiconductors back to prominence in the US, and the administration’s efforts have worked, with TSMC, for example, announcing significant investments in the country. This suggests that the AI supply chain will eventually see a massive reduction in reliance on countries like Taiwan, which will not only guarantee companies protection from China-Taiwan conflict, but also a much broader supply chain for US expansion.

For Nvidia, China is an important partner and a major contributor to the company’s DC (discrete card) and AI revenues, but U.S. trade restrictions limit the “green” company’s business. This includes the sale of butylated versions of MI GPUs (e.g. H20) and restrictions on the volume of units sold to the nation. Nvidia’s position in the Chinese market is unsustainable given the change in US policy and the entry of Huawei and similar competitors. Nvidia has to recognize this, but it could also mean a huge loss of revenue.

Therefore, Nvidia is moving forward defensively rather than retreating.

Source: WCCFTech