:max_bytes(150000):strip_icc()/GettyImages-2150288515-6de800e04d7e4bbba051871fd03cf5e4.jpg?w=696&resize=696,0&ssl=1 "Report: TSMC Negotiating to Manufacture Nvidia’s Blackwell AI Chip in Arizona")
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TSMC and Nvidia Collaborate on AI Chip Production in Arizona
Key Takeaways
Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly in discussions with Nvidia regarding the production of Nvidia’s Blackwell chips at TSMC’s new facility in Arizona. TSMC is expected to commence manufacturing these artificial intelligence chips early next year. Historically, these chips have been produced at TSMC’s plants in Taiwan.
The sourcing of these chips in the United States marks a significant step towards reshoring semiconductor production. Despite being manufactured in Arizona, the chips will still need to be returned to Taiwan for packaging, highlighting the complexities of global supply chains in the semiconductor industry.
Earlier this year, the Biden administration revealed plans to allocate $6.6 billion in direct federal support for the construction of TSMC’s Arizona factory complex. As the largest contract chip manufacturer globally, TSMC serves prominent clients including Apple and Broadcom, underscoring its pivotal role in the global tech ecosystem.
In premarket trading, American depositary receipts (ADRs) for TSMC have shown little movement but have experienced a substantial increase this year, nearly doubling in value. This growth reflects the growing demand for semiconductor technology, particularly in the artificial intelligence sector.
Source
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