Advanced Micro Devices (AMD) announced on Tuesday that its crucial processor chips would soon be produced at Taiwan Semiconductor Manufacturing Company’s (TSMC) new manufacturing facility in Arizona. This move marks the first time AMD’s products will be manufactured in the United States.
AMD Chief Executive Lisa Su revealed the news during a meeting with reporters in Taipei, stating, “Our new fifth-generation EPYC is doing very well, so we’re ready to start production.” The fifth-generation EPYC is AMD’s central processing unit (CPU) designed for data centers. Until now, AMD has relied on TSMC’s facilities in Taiwan for its chip production.
Other major tech companies, including Apple and Nvidia, have also begun producing some of their chips at TSMC’s Arizona plant. Su emphasized that diversifying their supply chain is crucial for AMD, particularly in light of the current geopolitical tensions affecting the semiconductor industry.
Recently, AMD completed the acquisition of ZT Systems, a leading supplier of AI servers in the US, expanding its presence in the country. Su noted, “We want to have a very resilient supply chain. Taiwan continues to be a very important part of that supply chain, but the United States is also going to be important, and we’re expanding our work there, including our work with TSMC and other key supply chain partners.”
When asked about the future of ZT Systems’ manufacturing capabilities, Su indicated that AMD plans to “find a strategic partner for the ZT manufacturing company” due to its numerous manufacturing partners. She did not provide further details.
Su reaffirmed that US manufacturing is a “key priority” for AMD as a US-based company. The decision to manufacture chips in the US comes amid an ongoing investigation by the US government into whether imports of semiconductors pose a threat to national security, potentially leading to the imposition of tariffs on these products.
The development underscores the tech industry’s efforts to diversify its supply chains, a move that has gained additional significance amid escalating trade tensions.
