However, Nvidia’s Blackwell chips will have to be shipped back to Taiwan for packaging since the Arizona facility does not have the necessary CoWoS capacity, the Reuters report says. Taiwan’s TSMC is reportedly in discussions with Nvidia to produce its Blackwell AI chips at the contract manufacturer’s new plant in Arizona.

TSMC is preparing to start production in early 2025, sources told Reuters. Currently, Nvidia’s Blackwell chips are manufactured at TSMC’s plants in Taiwan. The chips, which are much faster in tasks like serving up answers from chatbots, are in high demand from companies in the generative AI and accelerated computing space. 

Sources told Reuters that Apple and AMD are current customers at the Arizona plant. However, Nvidia’s Blackwell chips will have to be shipped back to Taiwan for packaging since the Arizona facility does not have the necessary chip on wafer on substrate (CoWoS) capacity, the Reuters report says. 

With the Arizona plant about to reach mass production, the Taiwanese tech giant is said to be courting more US clients. Cloud firm Amazon Web Services plans to use TSMC’s 3nm process to produce its new AI chip, Trainium3, according to a report by Commercial Times.

TSMC’s first Arizona fab is nearly ready to produce chips based on the 5nm family, the Commercial Times report said.

Driven by rising demand for generative AI solutions, Nvidia’s stock has surged over 22% in the previous three months. 

Blackwell chips are designed to significantly enhance the speed and efficiency of AI tasks and can deliver up to 20 petaflops of compute power, which makes them four times faster than Nvidia’s older top chip, according to an earlier report by PCOutlet. They also reportedly reduce power needs by up to 25 times compared to previous versions.