Nvidia and TSMC in Talks to Manufacture Blackwell AI Chips in Arizona

The potential collaboration could shift AI chip production to the U.S., though packaging would still occur in Taiwan.

Nvidia is reportedly in discussions with Taiwan Semiconductor Manufacturing Company (TSMC) to produce its Blackwell AI chips at TSMC's Arizona facility starting in 2025.
The Blackwell GPUs, unveiled in March 2023, are highly sought after for AI applications and are currently manufactured in Taiwan using TSMC's advanced 4nm process.
Due to the lack of advanced packaging facilities in Arizona, chips produced there would need to be shipped back to Taiwan for final assembly using TSMC's CoWoS technology.
TSMC's Arizona plant has received $6.6 billion in federal funding as part of U.S. efforts to bolster domestic semiconductor manufacturing.
If finalized, the deal could reduce Nvidia's logistical challenges for U.S. customers but may increase production costs, raising concerns about maintaining competitive pricing.