Nvidia may be ready to take on Intel in one of its biggest ‘fortresses’

Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly talking with Nvidia about manufacturing its Blackwell artificial intelligence (AI) chips at its new Arizona plant. If these rumoured talks go through, TSMC may potentially secure another major customer for the facility. Last month, Intel was awarded nearly $8 billion in funding from the US Department of Commerce to boost its semiconductor manufacturing and packaging capabilities in multiple sites including Arizona. This funding, which was provided through the CHIPS and Science Act aims to strengthen domestic chip production and reduce reliance on foreign manufacturers. With TSMC reportedly in talks with Nvidia to produce its AI chips at this plant, it can affect Intel’s AI chip goals. When made in the US, Nvidia may offer its AI chips to its customers at a more competitive price.