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AMD Chooses TSMC for AI Chips: No Other Suppliers in the Mix

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AMD

AMD CEO Lisa Su clarified that the company has no plans to outsource AI chip production to any firms other than Taiwan’s TSMC.

During Thursday’s Advancing AI 2024 event in San Francisco, Su announced that the company has no plans to utilize advanced processes from other firms for high-speed AI chip production besides TSMC.

This represents a shift from Su’s earlier position on diversifying the supply chain beyond TSMC. At the Goldman Sachs Tech Conference 2024, also held in San Francisco, Su noted that while TSMC is a valuable partner, the company sought greater diversity in its supply chain.

Instead, AMD plans to strengthen its collaboration with TSMC. Su also revealed that AMD will utilize TSMC’s new facilities in Arizona, saying, “We would love to use more capacity outside of Taiwan. We are very aggressive in using TSMC’s Arizona facility.”

TSMC began production at its Arizona facility last month, a project that broke ground in May 2021. Operations are running four to nine months ahead of schedule, which could accelerate the timeline for mass production.

TSMC is constructing two factories in Arizona and plans to expand to six by 2030. With the first factory’s mass production starting earlier than expected, constructing facilities capable of advanced process technology is also likely to be expedited.

At the same event, AMD introduced its new AI chip, the MI325X, a follow-up to its current MI325X chip, which was released at the end of last year.

AMD explained that while MI325X uses the same architecture as the previous chip, it incorporates a new type of memory that enhances AI computing speed. The company plans to begin mass production of the MI325X by the end of the year, with shipments starting in January. This launch positions AMD to compete directly with NVIDIA’s next-generation chip, Blackwell, which will soon be set for mass production.

theguru
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