TSMC and NVIDIA are in talks. A big change is coming
The giants are negotiating the production of Blackwell chips. This decision, although strategic, involves numerous technological and economic challenges.
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As reported by the Reuters news agency, TSMC and NVIDIA are negotiating the production of the latest systems Blackwell at plants located in the United States, not just Taiwan. It’s more about FAB 21 near Phoenix, Arizona. This would allow for strengthening the supply chain Greens.
This is not only a business decision, but also a political one
It shows up here though some significant challenges. Blackwell accelerators built for HPC and AI use custom 4nm class processes. And while lithography is not a problem, the method of packaging – TSMC CoWoS-L – yes, yes. The Taiwanese do not have such advanced lines in the USA, and the American partner company, Amkor Technologywill launch such services only in 2027.
In practice this means that even if silicon wafers are created in FAB 21, the final assembly of the accelerators will have to take place in Taiwan. This will incur additional costs, but considering that most AI servers are built in Formosa anyway, the logistical difficulties should not be huge.
Theoretically, NVIDIA could redesign Blackwellso as to use Intel technologies – EMIB or Foveros 3D – and thus become independent from the Taiwanese CoWoS. However, this would be an expensive solution. On the other hand, if the Greens want to produce Blackwell exclusively in the US, that may be the only way to go.
Another alternative is production of the Blackwell family in Arizona, but only in the version for the consumer segment. Desktop graphics cards do not require such a complex assembly process. And this would free up processing capacity in Taiwan for systems working with artificial intelligence.
The problem is that Today, no one makes graphics cards in the United Statesand TSMC plans to charge higher fees for production outside Taiwan. AND Compared to technological giants, gamers do not have bottomless pockets. From an economic point of view, such a solution seems to be unprofitable.
One thing is certain – talks are ongoing, and Choosing a production site today is not only a business decision, but also a political one. In an era of technological competition and emphasis on local production, every move by NVIDIA and TSMC will be closely watched. Especially given Donald Trump’s strong dislike for China.
