Sources claim that TSMC is in discussions with Nvidia for the production of AI chips in Arizona.

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Taiwan Semiconductor Manufacturing Co (TSMC) is in talks with Nvidia Corp to produce its Blackwell AI chips at its new plant in Arizona, according to sources. The production preparations are underway, with manufacturing set to start early next year. The high demand for Blackwell chips, known for their speed in generative AI and accelerated computing tasks, has prompted Nvidia to look into TSMC’s Arizona facility. If finalized, this deal would secure TSMC another customer for its Arizona plant, which is expected to start volume production next year. While the front-end process of the chips will be produced in Arizona, they will still need to be packaged in Taiwan as the Arizona facility lacks essential CoWoS capacity. TSMC, the world’s largest contract chipmaker, is investing billions in building facilities in Phoenix as part of its expansion plans. This project has received significant subsidies from the U.S. government as part of efforts to bring semiconductor manufacturing back to the U.S. Apple and Advanced Micro Devices are also customers at the Arizona plant. Apple and AMD declined to comment on the matter.

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