09:27 AM EST, 12/05/2024 (MT Newswires) -- (Updates with Nvidia's ( NVDA ) response in the fourth paragraph.)

Taiwan Semiconductor Manufacturing ( TSM ) is in talks with Nvidia ( NVDA ) to develop its Blackwell artificial intelligence chips at TSMC's new production facility in Arizona, Reuters reported Thursday, citing three unnamed people familiar with the plan.

TSMC is already planning to start production early in 2025, the report added, citing the sources.

Nvidia's ( NVDA ) Blackwell chips will still be transported to Taiwan for packaging as the Arizona site does not have chip on wafer on substrate capacity, two of the sources told Reuters.

Nvidia ( NVDA ) declined MT Newswires' request for comment, while Taiwan Semiconductor did not respond.

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