TSMC is in talks with NVIDIA to produce advanced "Blackwell" GPUs at its Arizona plant. According to Reuters, this partnership could signal a shift in AI chip manufacturing to the US. The focus is on TSMC's Fab 21 in Phoenix, which specializes in 4 nm and 5 nm chip production. NVIDIA's Blackwell GPUs use TSMC's 4NP process technology, making the Arizona facility a suitable production site. However, there are challenges to overcome. One major issue is the lack of advanced packaging facilities in the US. While Amkor plans to start advanced packaging in 2027, TSMC's CoWoS packaging technology is currently only available in Taiwan. This means chips made in Arizona may need to be sent back to Taiwan for final assembly, potentially raising production costs.
Although there are other options, like using Intel's packaging technology or focusing on gaming GPU production in Arizona, these come with their own challenges. Intel's methods could increase costs, and the lack of graphics card manufacturing infrastructure in the US makes domestic gaming GPU production less feasible. Both TSMC and NVIDIA have not commented on the negotiations, as they are confidential. Interestingly, TSMC's Arizona plant has attracted other US companies for domestic manufacturing, such as Apple, rumored to produce its A16 Bionic chip, and AMD with high-performance designs, possibly EPYC or Instinct MI chips.
