Wedoany.com Report-Oct. 20, Nvidia (NVDA.O) unveiled on Friday the first U.S.-made Blackwell wafer, produced at TSMC’s semiconductor facility in Phoenix, reflecting the surge in demand for AI chips. The announcement comes amid the global race to supply computing power for AI development, supporting technology that increasingly approaches human-level intelligence.

An NVIDIA logo appears in this illustration taken August 25, 2025

Nvidia said in a blog post: “This bolsters the U.S. supply chain and onshores the AI technology stack that will turn data into intelligence and secure America's leadership for the AI era.” The move also aligns with broader U.S. efforts to strengthen domestic technology and manufacturing capabilities.

TSMC’s Arizona facility will manufacture advanced chips using two-, three-, and four-nanometer technologies, including A16 chips, critical for applications in AI, telecommunications, and high-performance computing, according to Nvidia. The new wafer production highlights the increasing importance of localized manufacturing for strategic technologies.

Recently, the AI industry has seen major partnerships and deals between AI firms and chipmakers, including Nvidia, AMD (AMD.O), and Broadcom (AVGO.O), to expand data center capacity and support growing AI workloads. These collaborations reflect the rapidly expanding market for AI solutions that require significant processing power.

TSMC, the world’s largest advanced chip manufacturer, raised its full-year revenue forecast on Thursday, citing strong demand for AI technologies. The company also reported record profits, surpassing market expectations, further signaling the booming AI sector’s impact on semiconductor sales.

Nvidia’s Blackwell wafer marks a key step in onshoring high-performance AI chip production in the U.S., reducing reliance on overseas facilities while ensuring domestic capacity for future AI deployments. By producing advanced chips locally, the company aims to support both commercial AI applications and national technology priorities.

The Blackwell wafer will serve as the foundation for Nvidia’s next-generation GPUs, which are essential for AI training and inference. Analysts note that the combination of U.S.-based production and advanced chip design will help meet the rapidly growing AI computing demand while reinforcing supply chain resilience.

Overall, the initiative highlights the synergy between AI innovation and semiconductor manufacturing, positioning Nvidia and TSMC to play a leading role in powering AI technologies globally. It also underscores the accelerating trend of onshoring critical tech components, reflecting both market demand and strategic priorities in high-performance computing.

This development is expected to further energize investment and partnerships in the AI and semiconductor industries, supporting the rapid growth of AI applications across data centers, cloud computing, telecommunications, and other high-tech sectors worldwide.