TSMC in Talks To Produce Blackwell AI Chip for Nvidia in Arizona, Report Says [Video]

Taiwan Semiconductor Manufacturing Co. (TSM) reportedly is in talks with Nvidia (NVDA) to produce the artificial intelligence (AI) darling’s Blackwell chips at the contract manufacturer’s new plant in Arizona.

According to Reuters, TSMC is preparing to start producing the AI chips early next year. Those chips have been made in TSMC’s plants in Taiwan. 

The report said that even though the chips could be made in the U.S., they would still have to be sent back to Taiwan to be packaged. 

The Biden administration earlier this year announced that TSMC would receive $6.6 billion in direct federal funding for the Arizona factory complex. TSMC is the world’s largest contract chip maker and also counts Apple (AAPL) and Broadcom (AVGO) among its customers.

American depositary receipts (ADRs) of the Taiwanese company are little changed in premarket trading but have nearly doubled this year.