Chip

Apple

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Taiwan Semiconductor Manufacturing Co. (TSMC) is in advanced discussions with Nvidia to produce the tech giant’s cutting-edge Blackwell AI chips at TSMC’s Arizona facility, according to three sources familiar with the matter.
The move, set to begin early next year, underscores TSMC’s strategy to expand its U.S. operations and cater to the surging demand for artificial intelligence technologies. Nvidia’s Blackwell chips, launched in March, are designed for generative AI and accelerated computing, boasting 30 times the speed of their predecessors in tasks like chatbot responses.
According to a Reuters <a href="https://www.reuters.com/technology/tsmc-talks-with-nvidia-ai-chip-production-arizona-sources-say-2024-12-05/" target="_blank" rel="noopener noreferrer nofollow">report</a>, this potential partnership would mark a significant milestone for TSMC’s Arizona plant, which is slated to begin volume production in 2024. Nvidia would join Apple and AMD, who are already utilizing TSMC’s U.S.-based production facilities, the sources said.
However, a notable challenge remains: while the Arizona plant will handle the front-end manufacturing of Blackwell chips, they will still need to be shipped back to Taiwan for chip-on-wafer-on-substrate (CoWoS) packaging, an essential step in the production process. TSMC’s CoWoS capabilities are currently limited to its facilities in Taiwan, the sources added.
TSMC’s Arizona expansion is part of a broader push by the U.S. government to strengthen domestic semiconductor production amid growing geopolitical tensions and supply chain vulnerabilities. The company is investing tens of billions of dollars in Phoenix, with significant federal subsidies supporting the effort.
Nvidia, TSMC, Apple, and AMD declined to comment on the matter. The Arizona plant’s growing client roster signals a critical shift in the global semiconductor landscape, positioning the U.S. as a key player in advanced chip manufacturing.
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TSMC Arizona Eyes Nvidia for Blackwell AI Chip Manufacturing

The Crypto Times

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