AMD CEO says company ready to make chips at TSMC US plant

Lisa Su, CEO of Advanced Micro Devices (AMD), announced the company is ready to begin chip production at Taiwan Semiconductor Manufacturing Company’s (TSMC) facility in Arizona, US.

She also shared plans to ramp up production of AI servers in the United States.

AMD currently relies on TSMC, the world’s largest contract chipmaker, for manufacturing.

The Arizona facility marks a major step in expanding US semiconductor production.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ TSMC’s U.S. expansion marks critical shift in global chip manufacturing

The TSMC Arizona plant where AMD will begin production represents a significant milestone in the semiconductor industry’s geographic diversification strategy.

This $12 billion facility is part of TSMC’s broader global expansion that includes new manufacturing sites in Japan and Germany, demonstrating a strategic shift to mitigate geopolitical risks 1.

TSMC’s Arizona investment is particularly notable as the company produces approximately 13 million 300mm-equivalent wafers annually and controls advanced manufacturing processes that are crucial for high-performance computing 1.

The plant’s activation comes at a pivotal time when Taiwan accounts for a significant portion of the global semiconductor supply, with TSMC itself representing about 30% of Taiwan’s main stock index value 1.

For AMD, which transitioned its manufacturing from GlobalFoundries to TSMC to access cutting-edge technologies, having production capacity in the U.S. addresses both supply chain security concerns and potential tariff impacts 2.

This development illustrates how the semiconductor industry is responding to increasing pressures to regionalize production of critical components that power everything from smartphones to AI infrastructure.

2️⃣ Proposed U.S. semiconductor tariffs could reshape global chip supply chains

Trump’s upcoming announcement on semiconductor tariffs could have profound implications for companies like AMD that rely heavily on foreign manufacturing.

The proposed 25% duty would affect approximately 2.8 million semiconductor components and potentially cost U.S. importers an additional $6.35 billion annually 3.