Nvidia and TSMC Plan to Produce AI Chips in the U.S.: A New Tech Era
The companies plan to manufacture Nvidia's Blackwell AI chips at TSMC’s new Arizona plant, with production expected to start in 2025.
Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) are in talks to produce AI chips in the United States. According to Reuters, the chips will be manufactured at TSMC’s Arizona plant, which is set to begin operations in early 2025.
Why Does It Matter?
Nvidia’s Blackwell chips, introduced in March, are designed for generative AI and accelerated computing. They are 30 times faster at tasks such as chatbot responses compared to previous models.
Currently, Blackwell chips are produced at TSMC’s facilities in Taiwan. Expanding production to Arizona could reduce Nvidia’s reliance on Asian manufacturing amid growing geopolitical tensions.
The Arizona Plant
TSMC’s Arizona facility is a key part of the company’s expansion in the U.S. Apple and Advanced Micro Devices (AMD) are reportedly already clients of the plant.
This aligns with U.S. government initiatives like the CHIPS Act, which incentivizes domestic semiconductor production through subsidies and tax benefits.
Silence from Stakeholders
Both TSMC and Nvidia have declined to comment on the negotiations, citing confidentiality. Apple and AMD, also linked to the Arizona facility, have not responded to media inquiries.
Broader Context
Demand for high-performance AI chips continues to soar. Companies developing generative AI technologies, such as OpenAI, heavily rely on Nvidia products. Increasing U.S.-based production could help Nvidia meet the surging demand.
Simultaneously, TSMC is diversifying its manufacturing footprint to reduce dependence on its Taiwanese facilities.
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