Nvidia CEO Jensen Huang revealed that the trade agreement between Donald Trump and Chinese President Xi has allowed the company to maintain access to the Chinese market while simultaneously shifting production of its most advanced AI chips to the United States. Nvidia is now manufacturing its flagship Blackwell AI chip in Arizona, following a nine-month acceleration program supported by Trump’s executive directive to bring critical technologies back home.
The Trade Deal That Kept China Open
In an interview with Sunday Morning Futures, Huang explained that the agreement between Trump and Xi was essential for Nvidia to continue operating in China, even as the White House pushed for domestic production of strategic semiconductors.
“When President Trump returned to office, he wanted us to manufacture critical technologies on American soil,” Huang said. “His vision was to reindustrialize the United States and link America’s AI leadership to direct control of its supply chain.”
According to Huang, the deal prevented a total trade breakdown with China, giving the U.S. time to rebuild its own semiconductor manufacturing base.
Blackwell: The World’s Most Advanced AI Chip Built in America
Huang described artificial intelligence as “a new industrial revolution” and “the defining technology of our time.”
Trump, he said, demanded that Nvidia move production “at the speed of light.” Huang responded that the company could do it in nine months — and did.
Nvidia partnered with TSMC, Foxconn, Wistron, Amkor, and SPIL to establish a complete chip supply chain in Arizona, enabling the full-scale production of the Blackwell AI processor.
“Today, we’re producing the most advanced AI chip in the world entirely in the United States,” Huang stated. Thousands of engineers, electricians, and builders worked nonstop to meet the aggressive schedule.
Part of the output will be supplied to U.S. defense systems, while the rest will power commercial sectors such as robotics, healthcare, and scientific research.
Higher Costs, Historic Value, and an Expanding Ecosystem
Huang admitted that U.S. manufacturing remains more expensive than Taiwan’s, but efficiency gains are expected to drive costs down over time. “Early plants always bear the highest costs, but it’s a necessary investment in sovereignty and security,” he said.
Last week, Nvidia reached a record market capitalization of $5 trillion, with shares closing at $207.04. The company also announced new strategic partnerships across sectors including healthcare, energy, and public AI systems.
Key partnerships include:
🔹 Eli Lilly – AI-driven drug discovery
🔹 Palantir – enterprise AI systems
🔹 Uber – development of autonomous ride-hailing fleets
🔹 U.S. Department of Energy – construction of seven new AI supercomputers
National Security and American Jobs
Huang emphasized that relocating production to Arizona is both an economic and national security priority.
“We can’t afford to have the manufacturing of technologies critical to defense and AI scattered around the world,” he said.
According to him, this transformation will create millions of highly skilled jobs and ensure long-term supply chain stability.
“Trump’s three pillars — reindustrialization, energy growth, and AI leadership — represent a vision that could redefine America’s role in the world,” Huang concluded. “It’s an inspiring vision, and Nvidia fully supports it.”
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