NVIDIA Blackwell Chips Made by TSMC in the U.S. Must Return to Taiwan for Packaging

The United States aims to achieve independence in advanced silicon manufacturing. TSMC has taken a major step toward this goal with its Fab 21 facility in Arizona.

Just a few days ago, TSMC produced its first NVIDIA chip based on the Blackwell architecture in this U.S. factory — a significant milestone for advanced technology manufacturing in America. However, some challenges remain.

TSMC Produces NVIDIA Blackwell Chips in the U.S., But With Exceptions

The GPUs based on the Blackwell design not only use TSMC’s advanced process node but also rely on an advanced packaging system. Specifically, these GPUs require CoWoS (Chip on Wafer on Substrate) packaging.

To complete this step, they must return to TSMC’s facilities in Taiwan.

This situation weakens U.S. independence in chip production since the chips need to travel overseas for final packaging, which also includes integrating HBM3e memory stacks.

To solve this issue, TSMC is partnering with Amkor Technology, which is building a new packaging facility in the United States.

This project involves a $7 billion investment that aims to eliminate the need to send Blackwell GPUs (and other CoWoS-based chips) back to Taiwan for completion.

Once operational — expected around mid-2027 — this move will allow chips to be truly labeled “Made in USA.”