However, the chips will still need to be shipped back to Taiwan for packaging as the Arizona facility lacks the chip on wafer on substrate (CoWoS) capacity essential for the Blackwell chips. If the agreement is finalized, it would secure another customer for TSMC's Arizona facility, which is set to start volume production next year. Current customers at the Arizona plant include Apple and Advanced Micro Devices.
Key takeaways:
- Taiwan Semiconductor Manufacturing Co (TSMC) is in talks with Nvidia Corp to manufacture its Blackwell artificial intelligence chips at TSMC's new plant in Arizona.
- TSMC is preparing to start production early next year, with the Blackwell chips currently being manufactured at TSMC’s facilities in Taiwan.
- The agreement would secure another customer for TSMC’s Arizona facility, which is scheduled to start volume production next year. Apple and Advanced Micro Devices are current customers at the Arizona plant.
- While TSMC plans to produce the front-end process of Nvidia’s Blackwell chips in Arizona, the chips will still need to be shipped back to Taiwan for packaging as the Arizona facility does not have the necessary chip on wafer on substrate (CoWoS) capacity.