Investing.com -- On Tuesday, President Trump took to Truth Social to express his enthusiasm about Nvidia (NASDAQ: NVDA )’s commitment to invest $500 billion in the construction of AI supercomputers in the United States. Trump highlighted the significance of this investment, stating, "This is very big and exciting news." He assured that all necessary permits for Nvidia would be expedited, reflecting his administration’s support for companies that contribute to what he calls the "Golden Age of America."

Nvidia announced on Monday its ambitious plan to build AI servers in the U.S., totaling as much as $500 billion over the next four years. This initiative includes collaboration with partners such as Taiwan Semiconductor Manufacturing Company (TSMC) and is a part of the Trump administration’s efforts to encourage local manufacturing by American tech firms.

The project will see the production of Nvidia’s Blackwell AI chips at TSMC’s facility in Phoenix, Arizona. Additionally, supercomputer manufacturing plants in Texas operated by Foxconn (SS: 601138 ) and Wistron are expected to commence operations within 12 to 15 months. This strategic move will shift a significant portion of Nvidia’s production, which is predominantly based in Taiwan, back to the U.S.

Nvidia’s decision comes shortly after the U.S. government excluded electronics, including smartphones and chips, from reciprocal tariffs imposed on China. However, the administration has indicated it will announce the tariff rate on imported chips within the next week. The tariff exemptions reflect a growing recognition of the potential impact on consumers already dealing with inflation and the thriving AI industry that depends on chip-related imports from China and Taiwan.

Jensen Huang, Nvidia’s CEO, commented on Monday about the benefits of adding American manufacturing to their operations. "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," he said. Nvidia anticipates that this move will generate hundreds of thousands of jobs in the coming decades.

President Trump attributed Nvidia’s decision to the election and the implementation of tariffs. During a White House briefing, he said, "The reason they did it is because of the election on November 5, and because of the thing called tariffs." Huang had previously indicated in March that while Nvidia saw minimal short-term effects from increased U.S. tariffs, the company would shift production stateside in the long term. Nvidia confirmed that TSMC has already begun producing its latest generation of chips at the Arizona factory.