Nvidia has begun domestic production of its cutting-edge AI chips, marking a significant shift in the semiconductor manufacturing landscape. The company’s strategic move to produce Blackwell AI GPUs at TSMC’s Arizona plant represents a major milestone in the U.S. effort to strengthen domestic chip manufacturing capabilities. This development, coupled with Nvidia’s plans for supercomputer production in Texas, signals a new chapter in American high-tech manufacturing as competition in AI infrastructure intensifies globally.
The big picture: Nvidia has started manufacturing its Blackwell AI GPUs at TSMC’s Phoenix, Arizona plant, with additional packaging and testing being handled by companies within the state.
- TSMC, the world’s largest chipmaker, began producing 4nm process chips at its Arizona factory in January following a $100 billion investment in U.S. chipmaking announced last month.
- The Taiwan-based semiconductor giant also has plans to manufacture more efficient 2nm technology chips by the end of the decade, further boosting American semiconductor capabilities.
Key details: Nvidia hasn’t specified which Blackwell chips are being produced at TSMC’s Arizona facility or whether production includes the advanced Blackwell Ultra GB300 chip unveiled earlier this year.
- According to Nvidia’s website, Blackwell chips utilize TSMC’s custom 4NP process.
Expansion plans: Nvidia is partnering with electronics manufacturers Foxconn and Wistron to build supercomputer production plants in Texas.
- Mass production at these two facilities is expected to scale up over the next 12 to 15 months, creating additional domestic manufacturing capacity.
Why this matters: The shift toward domestic production addresses growing concerns about supply chain resilience and national security in the critical semiconductor industry.
- Nvidia projects that manufacturing AI chips and supercomputers for “American AI factories” will generate “hundreds of thousands of jobs and drive trillions of dollars in economic security over the coming decades.”
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