AMD Plans Major Increase in AI Chip Supply by 2027

Advanced Micro Devices (AMD) plans to substantially increase its chip supply in 2027 as demand for artificial intelligence (AI) technology continues to grow, CEO Lisa Su said during a visit to Taiwan. AMD is expanding its AI business to compete more closely with Nvidia, the leading supplier of AI graphics processors. The company has seen strong growth in its market value as investors increasingly focus on the expanding AI industry. Su said one of the main objectives of her Taiwan visit was to strengthen AMD's supply chain and ensure that production of central processing units (CPUs) and graphics processing units (GPUs) can keep pace with rising demand. She met with representatives of Foxconn and was scheduled to meet with Taiwan Semiconductor Manufacturing Co. (TSMC).

AMD is also working with major memory-chip manufacturers to secure adequate supplies. Su was expected to travel to South Korea, home to Samsung Electronics and SK Hynix, two of the world's largest memory-chip producers. The company is preparing for strong demand over the next several years and believes additional advanced wafer production will be necessary. Su said AMD is now planning its production requirements three to five years ahead, reflecting expectations of sustained growth in AI-related computing.