Taiwan Semiconductor Manufacturing Co (TSMC) is reportedly in talks with Nvidia Corp to produce its advanced Blackwell artificial intelligence (AI) chips at TSMC’s upcoming facility in Arizona. According to sources familiar with the matter, the Arizona plant, which is set to begin volume production next year, could play a pivotal role in meeting the growing demand for Nvidia’s cutting-edge AI chips.
Nvidia unveiled its Blackwell chips in March, highlighting their ability to handle generative AI and accelerated computing tasks 30 times faster than previous models. The chips have so far been manufactured at TSMC’s facilities in Taiwan, where the company has leveraged its advanced capabilities to support Nvidia’s growing customer base in AI and high-performance computing.
The deal, if finalized, would make Nvidia another key customer for TSMC’s Arizona facility, which already counts Apple and Advanced Micro Devices (AMD) among its clients, according to two sources. Both Apple and AMD declined to comment on the matter.
While the Arizona plant will handle the front-end manufacturing process for the Blackwell chips, the chips will still need to be sent back to Taiwan for packaging. The Arizona facility currently lacks the Chip on Wafer on Substrate (CoWoS) capacity required for Blackwell chips, with all such capacity housed in Taiwan.
TSMC’s ambitious investment in Arizona is part of a larger effort to strengthen semiconductor manufacturing in the United States. The company is building three facilities in Phoenix and has secured significant subsidies from the U.S. government, which aims to reduce reliance on foreign chip production.
This collaboration between TSMC and Nvidia underscores the critical role of advanced semiconductors in driving AI innovation and reflects the increasing efforts to localize semiconductor manufacturing in the United States while leveraging Taiwan’s expertise for specialized processes.
