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Taiwan Semiconductor Manufacturing Co and Nvidia are set to collaborate on producing advanced AI chips in Arizona, sources say. The partnership, if finalized, would strengthen U.S. chip capacity. TSMC’s new facility, slated to begin production next year, underscores America’s push for critical semiconductor independence.
TSMC, Nvidia Discuss Blackwell AI Chips in Arizona Facility
According to Reuters, three people knowledgeable with the situation have stated that Nvidia Corp and Taiwan Semiconductor Manufacturing Co are in talks to manufacture Blackwell AI chips at the new Arizona facility of the contract manufacturer.
According to the insiders, TSMC is already gearing up to begin production early in the new year.
So far, TSMC's Taiwanese factories have been responsible for manufacturing Nvidia's Blackwell chips. The company debuted these chips in March. The chips, which the business claims are 30 times faster at jobs like giving up answers from chatbots, have experienced considerable demand from customers interested in generative AI and accelerated computing.
Arizona Plant Prepares for Nvidia’s AI Chip Production
If finalized, the arrangement would mean that TSMC's Arizona factory, which is set to begin commercial production next year, has another customer.
Both Nvidia and TSMC chose not to comment. Given the sensitive nature of the discussions, the sources preferred to remain anonymous.
According to two of the insiders, the Arizona plant now serves clients such as Advanced Micro Devices and Apple. No word yet from Apple or AMD on whether they would comment.
Taiwan Retains Key CoWoS Capability for Blackwell Chips
Nevertheless, Nvidia's Blackwell chips will still require shipment back to Taiwan for packaging, even if TSMC intends to manufacture the front-end process in Arizona. Two of the individuals stated that the Arizona plant lacked the chip-on-wafer-on-substrate (CoWoS) capability necessary for the Blackwell chips.
At the moment, Taiwan is home to all of TSMC's CoWoS capability, Yahoo Finance points out.
TSMC Expands Phoenix Project Amid U.S. Subsidy Push
The United States government is keen on relocating semiconductor production to the country, and as a result, it is subsidizing a massive project in which the largest contract chipmaker in the world, TSMC of Taiwan, is investing tens of billions of dollars to construct three facilities in Phoenix.
