NVIDIA Rival Etched Plans Access to TSMC Capacity via Arizona

Etched, a startup viewed as one of NVIDIA's primary competitors in the AI chip market, is taking strategic steps to expand its production chain. Founded four years ago and currently valued at $5 billion, the company successfully developed its first chips at TSMC plants. However, amid global chip shortages and limited production capacity, the company is linking its future to the US state of Arizona. This was reported by Techcrunch.com news reports.

According to TechCrunch, Etched plans to start delivering its systems to customers in the summer of this year. However, the issue of scaling production remains urgent. Like other chip designers, Etched is forced to fight for limited quotas at TSMC's plants in Taiwan. This is where investor Jack Selby and his Copper Sky Capital venture fund are expected to help.

Jack Selby is a former executive at PayPal and a long-time managing director of Peter Thiel's Thiel Capital family office. In 2021, he founded the Copper Sky fund in Phoenix, with the primary goal of supporting startups in Arizona and the Southwestern US. Selby participated in Etched's $120 million Series A investment round and promised to help the startup move production to Arizona.

Arizona — The New Hub of the Semiconductor Industry

Selby's strategy is to reduce production costs by attracting startups from California, Massachusetts, and New York to his region. As a board member of the Arizona Commerce Authority, he plays a key role in attracting large technology companies to the state. For Etched, this partnership could open a direct path to TSMC's new GIGAFAB plant in Arizona.

"When Copper Sky invested in Etched, they clearly understood our connections with the Arizona semiconductor industry, especially our ties to the local TSMC plant," noted Jack Selby. This partnership allows the startup to reduce dependence on plants in Taiwan and create a stable supply chain within the US.

Currently, the Copper Sky fund is working on forming its second, $300 million fund. These funds will be directed toward financing high-tech hardware manufacturers and defense startups not only in the Southwest but across the entire US. This creates a foundation for new players to emerge in a market dominated by NVIDIA.

For technology enthusiasts and investors in Uzbekistan, these processes are significant as part of geopolitical shifts in the global chip market. The reshoring of production from Asia to the US will directly affect the price and availability of AI devices in the future. The success of startups like Etched will undoubtedly strengthen healthy competition in the market.