Advanced Micro Devices has committed more than $10 billion to expand its presence in Taiwan, deepening partnerships across the island's semiconductor ecosystem as it seeks to close the gap with Nvidia in the fast-growing artificial intelligence chip market.
The US chipmaker announced Thursday it is collaborating with a range of Taiwanese partners including ASE Technology and its unit SPIL, Powertech Technology, Sanmina, Wiwynn, Wistron and Inventec to bolster packaging capacity and develop more power-efficient technology for AI systems and processors.
Central to the investment is AMD's Venice CPU line, which is being manufactured on Taiwan Semiconductor Manufacturing Company's advanced 2-nanometre process technology. AMD confirmed it has already begun ramping up production of the Venice chips, signalling that the partnership is moving beyond planning into active deployment.
Chief Executive Lisa Su, currently visiting Taiwan and due to appear at a fireside chat hosted by a local media outlet on Friday, framed the commitment as a direct response to surging global demand for AI infrastructure.
"As AI adoption accelerates, our global customers are rapidly scaling AI infrastructure to meet growing compute demand," she said. "By combining AMD leadership in high-performance computing with the Taiwan ecosystem and our strategic global partners, we are enabling integrated, rack-scale AI infrastructure that helps customers accelerate deployment of next-generation AI systems."
Taiwan occupies a pivotal position in the global AI supply chain, anchored by TSMC, the world's largest contract chipmaker, and remains indispensable to companies including Nvidia and Apple. AMD is among a growing number of chipmakers strengthening their foothold on the island as artificial intelligence demand continues to reshape the global semiconductor industry.
While Nvidia remains the dominant provider of AI processors, data centre operators are increasingly seeking alternative suppliers, a trend that has steadily worked in AMD's favour. Analysts and investors widely regard the company as Nvidia's most credible challenger in the AI chip market, and the scale of Thursday's announcement is likely to reinforce that perception.
The investment underscores how Taiwan has become the central battleground in the global race to build next-generation AI computing infrastructure.
(With inputs from Bloomberg and Reuters)
