According to sources from Reuters, TSMC is expected to produce NVIDIA’s Blackwell chips for AI at its factory in Arizona, one of the newest facilities in the Taiwanese company’s global network.
Although initial production of these chips has already started at TSMC’s Taiwan factories, the high demand for these chips—driven by customers in need of powerful AI processing—has led to discussions between TSMC and NVIDIA to expand production to the U.S. Production is expected to begin in early 2025, though the details of the partnership remain unofficial.
NVIDIA would be TSMC’s 3rd customer in the US
According to Reuters sources, Apple and AMD are already customers of TSMC’s factory in Arizona, and if the rumor is true, NVIDIA could become the third customer to use this facility. The agency reached out to all involved companies, but none provided a comment on the matter.
Two sources revealed that the Arizona factory currently lacks the capacity needed to produce NVIDIA’s AI chips based on the Blackwell architecture. Even if production takes place in the U.S., the chips would still need to be sent back to Taiwan for packaging—essentially assembling the board structure required for commercialization.
TSMC has made significant investments in Arizona, exceeding $65 billion across three factories since 2020, marking the largest investment in the state’s history. These facilities are expected to generate over 20,000 direct jobs, with many more created indirectly.
The launch of the Blackwell chips, initially expected by the end of this year, has been delayed to early 2025 due to design issues identified by NVIDIA.
