NVIDIA's highly sought-after Blackwell AI GPUs could be manufactured at TSMC's new Arizona facility, according to sources cited by Reuters. However, a potential hurdle remains: packaging. Due to the specialized CoWoS (chip-on-wafer-on-substrate) technology required for Blackwell, the GPUs may be shipped back to Taiwan for this final stage of production.
TSMC's Arizona plants recently received $6.6 billion in funding, with the first facility slated to begin production using 4nm and 5nm processes in 2025. This aligns with the potential timeframe for Blackwell production, which is likely based on one of these node technologies.
While TSMC's Arizona plants represent a significant step in US chip manufacturing, packaging remains a bottleneck. Reuters' sources indicate that even if Blackwell GPUs are made in Arizona, they would likely be sent to Taiwan for CoWoS packaging, a process in which TSMC has heavily invested.
This arrangement could be temporary. TSMC has partnered with Arizona-based Amkor to bring CoWoS and InFO packaging capabilities to the Arizona site. Packaging has reportedly been a point of contention between NVIDIA and TSMC, with rumors of NVIDIA CEO Jensen Huang's request for a dedicated packaging line being declined.
The Reuters report also mentions that AMD and Apple have committed to using chips from TSMC's Arizona facility. While neither company has commented, Apple CEO Tim Cook previously confirmed plans to source chips from the site.
