AMD Is Investing More Than $10 Billion in Taiwan to Build Advanced Chip Packaging With TSMC. Here's What Lisa Su Is Actually Buying With That Money.
AMD's biggest AI challenge may no longer be winning customers but making enough hardware to serve them.
Overview
Advanced Micro Devices (NASDAQ: AMD) plans to invest more than $10 billion in Taiwan. But this does not mean that Taiwan Semiconductor Manufacturing (NYSE: TSM) will be the only beneficiary.
Instead, the money will go across Taiwan's broader semiconductor ecosystem, including advanced packaging, chip substrates (the base materials used in advanced chip packaging), and manufacturing capacity for complete artificial intelligence (AI) systems. These investments are expected to run through 2029 and help its partners scale production of next-generation products such as its Helios AI racks.
Details
Hence, CEO Lisa Su is investing now to ensure AMD can manufacture enough hardware if its rapidly growing AI demand translates into large-scale deployments.
Source
Originally published at www.fool.com.