TSMC won't make concessions to NVIDIA: NVIDIA Blackwell graphics chips may be manufactured in the U.S., but their packaging will be centred in Taiwan.
Taiwan Semiconductor Manufacturing Company (TSMC) could begin manufacturing NVIDIA Blackwell GPUs at its new Arizona facilities in 2025. These GPUs, which are in demand for the latest artificial intelligence models, will be manufactured using 4-nanometre and 5-nanometre technologies.
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However, packaging of the chips will remain a bottleneck: they will be sent back to Taiwan to complete the process. TSMC plans to invest up to $16 billion to expand its packaging capacity to meet growing demand. In the future, the company may add CoWoS and Integrated FanOut (InFO) packaging capabilities at its Arizona plants by partnering with local firm Amkor. The move is part of TSMC's broader strategy to increase production in the US, supported by $6.6 billion in funding from the Biden-Harris administration.
Despite this, packaging remains a contentious issue between NVIDIA and TSMC, as NVIDIA CEO Jensen Huang previously requested a dedicated packaging line for the company's products but was denied. In addition to NVIDIA, chips from Arizona will also be purchased by AMD and Apple.
Source: wccftech
