TSMC (TSM, Financial) is in talks with NVIDIA (NVDA) to manufacture Blackwell AI chips at its new plant in Arizona. TSMC is prepared to start production early next year. These chips, launched by NVIDIA in March, are currently produced in Taiwan and are in high demand for generative AI and accelerated computing tasks, offering a 30-fold speed increase in operations like answering chat queries.
If agreed, this deal would add another client to TSMC's Arizona facility, joining current customers like Apple (AAPL) and Super Micro Computer (SMCI). However, the chips will still need to be sent back to Taiwan for packaging due to the lack of CoWoS capacity in Arizona.
