**Nvidia and TSMC Produce First U.S.-Made Blackwell AI Wafer at Arizona Facility**
In a pivotal moment for the U.S. semiconductor industry, Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) have successfully produced the first U.S.-made Blackwell AI wafer at TSMC’s state-of-the-art facility in Phoenix, Arizona. This milestone marks the official start of volume production for Nvidia’s next-generation Blackwell chips, strengthening America’s domestic semiconductor supply chain amid growing demand for high-performance computing and artificial intelligence hardware.
Nvidia CEO Jensen Huang joined TSMC executives at the Arizona fab to commemorate the achievement, underscoring the significance of their partnership in meeting global AI and computing demands. The Arizona facility is part of TSMC’s broader U.S. expansion strategy, designed to produce chips using advanced 2-, 3-, and 4-nanometer processes, including cutting-edge A16 chips tailored for AI, telecommunications, and supercomputing workloads.
### Strengthening U.S. Semiconductor Resilience
For the U.S. government, this collaboration represents tangible progress toward localizing semiconductor manufacturing under the CHIPS and Science Act, which incentivizes domestic chip production to reduce dependency on Asian supply chains. Producing Blackwell chips on U.S. soil moves the country closer to self-sufficiency in advanced AI hardware.
“AI is reshaping industries at an unprecedented pace,” said Jensen Huang during the ceremony. “Producing Blackwell chips in the United States is a landmark moment for both Nvidia and the broader semiconductor ecosystem.”
TSMC executives echoed this sentiment, noting that the Arizona facility will play a central role in supplying chips for AI data centers and next-generation computing applications—helping the U.S. reclaim technological leadership in advanced manufacturing.
### Packaging Bottlenecks Still Offshore
Despite this milestone, full localization of Nvidia’s supply chain has yet to be realized. While wafer fabrication now takes place in Arizona, advanced packaging — specifically Chip-on-Wafer-on-Substrate (CoWoS-L) — still occurs in Taiwan. This sophisticated packaging process integrates multiple dies and memory layers into final modules essential for AI workloads.
Industry analysts point out that TSMC’s lack of U.S.-based CoWoS facilities delays complete supply chain independence. However, plans are underway to address this packaging bottleneck. TSMC has signed a Memorandum of Understanding with Amkor Technology, a major outsourced semiconductor assembly and test (OSAT) provider, aiming to establish advanced packaging capabilities in Arizona.
The first U.S.-based packaging lines are expected to launch between 2028 and 2030, incorporating Integrated Fan-Out and System-on-Integrated-Chip (SoIC) technologies. Until then, reliance on Taiwan for final Blackwell chip assembly will continue.
### Future Prospects: AI-Driven U.S. Manufacturing Expansion
Looking ahead, Nvidia plans to integrate AI, robotics, and digital twin systems into future American manufacturing sites to automate and optimize chip fabrication processes. TSMC’s Arizona expansion includes three fabrication plants, with the third phase (Fab 21 P3) scheduled to break ground in 2025.
Following this, a dedicated CoWoS-capable site is expected to emerge on U.S. soil, enabling advanced chip packaging for clients such as Apple, Nvidia, and AMD. Suppliers of high-bandwidth memory (HBM), CoWoS equipment, and substrate materials are already positioning themselves to capture market share from this ongoing expansion.
Experts predict that U.S.-based CoWoS output could exceed 100,000 units per month by late 2026, transforming the region into a major hub for AI chip manufacturing.
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This significant advancement not only enhances America’s chip supply chain resilience but also paves the way for future innovations in semiconductor manufacturing, solidifying the nation’s position in the burgeoning AI and high-performance computing markets.
https://coincentral.com/nvidia-marks-milestone-as-blackwell-ai-chip-production-kicks-off-in-the-united-states/
