Nvidia Corporation (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) are strengthening America’s artificial intelligence (AI) manufacturing base with a significant new milestone — the production of Nvidia’s first Blackwell wafer on U.S. soil.
Nvidia CEO Jensen Huang visited Taiwan Semiconductor’s semiconductor fabrication facility in Phoenix, Arizona, to celebrate the event, symbolizing the start of volume production for the company’s next-generation AI processors.
Standing alongside Taiwan Semiconductor Vice President Y.L. Wang, Huang signed the inaugural wafer, marking what he described as a pivotal step in fortifying U.S. semiconductor supply chains.
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The Phoenix fab, now a cornerstone of America’s chip ambitions, produces advanced two-, three-, and four-nanometer chips used across AI, telecommunications, and high-performance computing.
Among its output are A16 processors and the sophisticated Blackwell wafers that will undergo intricate layering, etching, and patterning to become Nvidia’s ultra-high-performance AI chips.
Nvidia also plans to extend its technological ecosystem by integrating AI, robotics, and digital twin systems into U.S. manufacturing operations.
Industry analysts view this as part of a broader push to localize advanced chip production and propel what many call America’s next industrial revolution.
U.S. Policies Reshape Taiwan Semiconductor’s Global Strategy
Washington’s trade and tariff policies have played a critical role in this shift. Tariffs imposed by the Trump administration on imported chips prompted Taiwan Semiconductor to scale back its Japan expansion plans and accelerate investment in the U.S.
The company has pledged an additional $100 billion toward American manufacturing, supplementing the $65 billion it had previously announced.
The strategic pivot reflects mounting geopolitical pressure and a desire to secure access to the U.S. market while reinforcing relationships with key customers, including Nvidia and Apple Inc. (NASDAQ:AAPL).
Nvidia’s Blackwell Era and Soaring Valuation
Nvidia’s progress with the Blackwell architecture comes amid record-breaking growth. In October, the company became the first in history to reach a $4.5 trillion market capitalization, fueled by relentless demand for its AI-focused graphics processing units.
Analysts see even greater potential ahead. In September 2024, I/O Fund’s Beth Kindig projected Nvidia could hit a $10 trillion valuation, calling early 2025 a potential “fireworks moment” as Blackwell’s production ramps up.
JPMorgan analyst Harlan Sur noted that demand for Blackwell chips could outstrip supply well into mid-2025, further solidifying Nvidia’s dominance in the AI semiconductor race.
Price Actions: TSM stock was trading higher by 2.45% to $302.30 premarket at last check Monday. NVDA stock was up 0.26%.
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