🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

TSMC in talks with Nvidia to produce Blackwell AI chips at Arizona plant - report

Published 12/05/2024, 05:31 AM
© Reuters.
AAPL
-
NVDA
-
AMD
-
TSM
-

Investing.com -- Taiwan Semiconductor Manufacturing (NYSE:TSM) (TSMC) is in talks with Nvidia Corp (NASDAQ:NVDA) to produce the tech giant’s Blackwell AI chips at TSMC's new facility in Arizona, Reuters reported Thursday, citing sources familiar with the matter.

TSMC is gearing up to begin production early next year, the report said.

Currently, Nvidia’s Blackwell chips, introduced in March, are produced at TSMC's facilities in Taiwan. These chips, which have gained significant traction among customers working in generative AI and accelerated computing, are touted to deliver performance up to 30 times faster for tasks such as chatbot responses.

If finalized, the deal would add Nvidia to the roster of clients for TSMC's Arizona plant, which is expected to commence large-scale production next year. The report said that Apple (NASDAQ:AAPL) and Advanced Micro Devices (NASDAQ:AMD) are the current customers at the facility.

However, TSMC plans to conduct only the initial manufacturing stages for the Blackwell chips in Arizona. The chips will need to be shipped back to Taiwan for advanced packaging, as the Arizona plant lacks the Chip-on-Wafer-on-Substrate (CoWoS) capability crucial for Blackwell chips, according to Reuters. At the moment, all of TSMC's CoWoS operations are based in Taiwan.

TSMC, the world's largest contract chipmaker, is investing tens of billions of dollars into three new facilities in Phoenix. This initiative has received substantial US government subsidies, aligning with efforts to boost domestic semiconductor manufacturing.

Specifically, the US Commerce Department announced earlier this year that TSMC’s US division will receive a $6.6 billion subsidy to support advanced semiconductor production at its Phoenix, Arizona facility, along with up to $5 billion in low-interest government loans.

In return, TSMC has committed to increasing its planned investment in the project by $25 billion, bringing the total to $65 billion. The company also agreed to construct a third Arizona fabrication plant by 2030.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.