Nvidia Shifts AI Chip Production to Arizona, Invests $1 Billion in Nokia for 5G/6G Advancement

Nvidia has officially commenced full production of its cutting-edge Blackwell AI chips in Arizona, marking a significant strategic pivot from its traditional Taiwan-based manufacturing operations, as reported by IC Components. This move, announced by CEO Jensen Huang at the 2025 GTC conference, aligns with crucial U.S. national security objectives and aims to bolster domestic semiconductor supply chains.

This shift represents the first time Nvidia's fastest AI chips are being produced entirely within the United States, with the initial Blackwell wafers already manufactured at a Phoenix facility through a collaboration with TSMC, according to Tech Times. The decision follows a direct request from former President Donald Trump to bring manufacturing back to the U.S. for national security and job creation, as stated by nvidia CEO Jensen Huang.

Concurrently, Nvidia has announced a substantial $1 billion equity investment in Nokia, as detailed by GSMArena.com news on October 29, 2025. This investment grants Nvidia a 2.90% stake in the Finnish telecommunications giant, signaling a deep strategic partnership.

The collaboration with Nokia is specifically aimed at accelerating the development of advanced 5G and 6G base station technology, Mobile World Live reported on October 31, 2025. Nokia intends to leverage these funds to advance its strategic plans for "trusted connectivity for the AI supercycle" and enhance its 5G and 6G RAN software to run on Nvidia's architecture.

Nvidia CEO Jensen Huang also expressed strong confidence in the company's future financial performance, projecting a combined $500 billion in sales from its Blackwell and next-generation Rubin chips. This forecast, highlighted by TrendForce on October 29, 2025, underscores the immense demand for AI infrastructure.

This ambitious revenue outlook, with visibility into $500 billion in chip-related revenue through 2026, was disclosed at Nvidia's first GTC conference in Washington, D.C., according to lapaas Voice. The company expects to ship approximately 20 million units of the new generation chips, a significant increase from the 4 million units of the prior Hopper series.

The dual announcements reflect Nvidia's aggressive strategy to solidify its leadership in the artificial intelligence sector while contributing to the resilience of the U.S. technology ecosystem, as noted by analysts. This move is seen as a critical step in reshaping global technology supply chains and advancing AI-driven innovation.

• The relocation of Nvidia's AI chip production to Arizona represents a significant step towards strengthening U.S. semiconductor supply chain resilience, a goal emphasized by the CHIPS and Science Act of 2022. This federal statute aims to boost domestic research and manufacturing of semiconductors to reduce foreign dependence and enhance national security, as explained by the Semiconductor Industry Association.

• Nvidia's Blackwell chips, now in full production in Arizona, are among the most advanced AI chips, featuring 208 billion transistors, more than 2.5 times that of the previous-generation Hopper chip, according to IC Components. These chips are crucial for powering large language models, generative AI tools, and data center computing, driving exponential growth in demand across industries.

• The $1 billion investment in Nokia is not merely financial but a strategic bet by Nvidia that network infrastructure, particularly next-generation systems, will become a critical battleground for AI and connectivity, Mobile World Live reported. This partnership aims to create "intelligent, adaptive networks" capable of processing AI-powered connectivity from the data center to the edge, as stated by Nokia CEO Justin Hotard.

• The collaboration between Nvidia and Nokia will accelerate AI-RAN (Radio Access Network) innovation, with trials expected to begin next year, focusing on field validation of performance and efficiency gains for customers, GSMArena.com news confirmed. T-Mobile U.S. will also collaborate with the two companies to drive and test AI-RAN technologies as part of the 6G innovation process.

• Nvidia's projected $500 billion in combined sales from Blackwell and Rubin chips through 2026 highlights the company's dominant position in the AI accelerator market, according to trendforce. This forecast includes the next-generation Rubin chips, which are expected to enter mass production in late 2026, further solidifying Nvidia's hardware innovation in AI.

• The shift in manufacturing to the U.S. is also a response to geopolitical pressures and a desire to secure access to the U.S. market, as well as to reinforce relationships with key customers, according to Sahm. Former Intel CEO Pat Gelsinger praised Nvidia's move, emphasizing the need for resilient supply chains for the world's most important technology.

• This domestic production initiative includes not only chip manufacturing but also the assembly of Blackwell-based systems in the U.S., with Nvidia partnering with companies like Foxconn and Wistron for supercomputer manufacturing plants in Texas, Tech Times detailed. Nvidia also plans to integrate AI, robotics, and digital twin systems into its U.S. manufacturing operations.

• The strategic importance of these developments extends to national security, as the U.S. Department of Defense strives to remain a leader in microchip research and production, Manufacturing.gov noted. The CHIPS Act provides significant funding to strengthen and revitalize the U.S. position in semiconductor manufacturing, ensuring a secure and reliable supply for defense and critical infrastructure sectors.