Benzinga·2025-10-20 09:28Core Insights - Nvidia has launched the first U.S.-made Blackwell wafer, essential for AI chips, at TSMC's facility in Phoenix, Arizona [1][2] - The introduction of the Blackwell wafer is a strategic response to the increasing demand for AI chips, with the wafer being a foundational component for semiconductors [2] - TSMC's Arizona facility will produce advanced technologies, including chips with sizes of two, three, and four nanometers, which are critical for AI and high-performance computing [3] Industry Context - Nvidia's CEO, Jensen Huang, described the launch as a "historic moment," marking a significant milestone in U.S. semiconductor manufacturing [3] - The initiative aligns with the vision of reindustrialization in the U.S., aiming to bring manufacturing jobs back to America [4] - Despite the progress, the U.S.-made Blackwell wafer will still require advanced packaging in Taiwan, indicating that full domestic production is not expected for another two years [5] Competitive Landscape - The announcement follows Taiwan's rejection of a proposal for a 50-50 split in semiconductor production between the U.S. and Taiwan, highlighting ongoing structural challenges in the U.S. chip ecosystem [6] - Additionally, Apple has secured a significant portion of TSMC's 2nm chip production capacity, creating a competitive advantage while mitigating risks associated with potential tariffs [7] - Year-to-date, Nvidia and TSMC's shares have seen substantial increases of 32.47% and 46.38%, respectively, reflecting positive market sentiment [7]