Unique-TSMC in talks with Nvidia for AI chip manufacturing in Arizona, sources say​

By Wen-Yee Lee and Fanny Potkin

TAIPEI/SINGAPORE (Reuters) – Taiwan Semiconductor Manufacturing Co is in discussions with Nvidia Corp (NASDAQ:NVDA) to provide its Blackwell synthetic intelligence chips on the contract producer’s new plant in Arizona, three sources accustomed to the matter mentioned. 

TSMC is already making preparations to begin manufacturing early subsequent 12 months, the sources mentioned.

Nvidia’s Blackwell chips, which the corporate unveiled in March, have to date been manufactured at TSMC’s amenities in Taiwan. The corporate has seen excessive demand from prospects concerned in generative AI and accelerated computing for the chips, which it says is 30 instances speedier at duties like serving up solutions from chatbots.

The settlement, if finalised, would safe one other buyer for TSMC’s Arizona facility, which is scheduled to begin quantity manufacturing subsequent 12 months.

TSMC and Nvidia declined to remark. The sources didn’t wish to be recognized because the talks have been confidential.

Two of the sources mentioned Apple (NASDAQ:AAPL) and Superior Micro Units (NASDAQ:AMD) are present prospects on the Arizona plant. Apple and AMD didn’t instantly reply to requests for remark.

Nonetheless, whereas TSMC plans to provide the front-end technique of Nvidia’s Blackwell chips in Arizona, the chips will nonetheless have to be shipped again to Taiwan for packaging. The Arizona facility doesn’t have chip on wafer on substrate (CoWoS) capability that’s important to the Blackwell chips, two of the sources mentioned. 

All of TSMC’s CoWoS capability is presently in Taiwan. 

Taiwan’s TSMC, the world’s largest contract chipmaker, is investing tens of billions of {dollars} in constructing three amenities in Phoenix and the challenge has gained vital subsidies from the U.S. authorities which desires to convey semiconductor manufacturing again to america.