Nvidia, TSMC Unveil The First US-Made Blackwell Wafer, But Analyst Ming-Chi Kuo Flags This Overlooked Detail

Nvidia Corp (NASDAQ:NVDA) has introduced the first U.S.-made Blackwell wafer, a crucial component for AI chips, at Taiwan Semiconductor Manufacturing Co‘s (NYSE:TSM) facility in Phoenix.

First US Blackwell Chip

The unveiling of the Blackwell wafer is a response to the surging demand for AI chips. The wafer, which serves as the foundation for semiconductors, will undergo a series of intricate processes before transforming into the ultra-high-performance, accelerated AI chip offered by the NVIDIA Blackwell architecture, Nvidia announced on Friday.

The Arizona facility of TSMC will manufacture advanced technologies, including two-, three-, and four-nanometer chips, as well as A16 chips, which are essential for AI, telecommunications, and high-performance computing, according to Nvidia.

Nvidia’s CEO, Jensen Huang, hailed the development as a “historic moment,” marking the first time in recent American history that the most crucial chip is being produced in the U.S. by TSMC, the most advanced fab in the country.

"This is the vision of President Trump of reindustrialization — to bring back manufacturing to America, to create jobs..” added Huang.

US Blackwell Wafer Still Needs Taiwan

Analyst Ming-Chi Kuo on Sunday, notes that NVIDIA and TSMC's announcement masks a key detail: the first U.S.-made Blackwell wafer from Arizona still needs to be shipped to Taiwan for CoWoS advanced packaging.

Since CoWoS, crucial for high-performance AI chips, remains Taiwan-dependent, full domestic production isn't expected until two years from now.

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This development comes in the wake of Taiwan’s rejection of the Trump administration’s proposal for a 50-50 split in semiconductor production between the U.S. and Taiwan, earlier this month. This move by Nvidia could be seen as an attempt to address the structural issues within America’s own chip ecosystem.

It also comes on the heels of Apple Inc.’s (NASDAQ:AAPL) August deal with TSMC to secure nearly half of TSMC’s initial 2nm chip production capacity. Apple has secured supply for its flagship device and created a "firewall" against Trump's proposed 100% semiconductor tariffs, leveraging its scale, planning, and U.S. investments to stay protected while competitors face risks.

Price Action: On a year-to-date basis, shares of Nvidia and TSMC surged 32.47% and 46.38%, respectively, as per data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.