TSMC could end up producing Nvidia's AI chips in Arizona

According to a report from Reuters, the Taiwanese Semiconductor Manufacturing Co (TSMC) is preparing to start production from their new manufacturing plant in Arizona as early as next year. The Taiwanese contract manufacturing company has many popular tech clients, including Apple, Nvidia, AMD, Qualcomm, MediaTek, and more. 

TSMC got the green light to build three manufacturing facilities in Phoenix, Arizona, in 2020. Apple is already among the first clients for the plant, securing a deal to manufacture System-On-Chips (SoC) for the iPhone 16. 

Reuters reports that TSMC is in talks with Nvidia for a deal to manufacture Blackwell AI chips from the plant. Nvidia's upcoming AI chips were announced in March but have faced numerous delays and redesigns since then.

The deal, if finalized, would be to produce the "front-end process of Nvidia's Blackwell chips in Arizona," but it will still need to be shipped back to Taiwan for packaging. The Phoenix plant is not equipped with chip-on-wafer substrate (CoWoS) facilities.