AMD announced that major processor chips will soon be produced at TSMC’s new facility in Arizona, indicating that AMD’s products will be manufactured in the US for the first time. The news comes shortly after AI giant Nvidia, which announced it would produce AI chips and supercomputers in Arizona and Texas.
Reuters Report AMD CEO Lisa Su has announced that the company’s fifth generation EPYC CPU for data centers will be manufactured at TSMC’s Arizona plant. The decision comes amid growing concern over US-China trade tensions and the potential impact of tariffs on the semiconductor industry.
The Trump administration’s investigation into whether semiconductor imports pose a threat to national security has heightened the importance of such an initiative. The potential imposition of tariffs on these products has led tech companies to reevaluate their supply chains and explore alternative manufacturing locations.
As Breitbart News reported Monday, AI Giant Nvidia is also increasing production in Texas and Arizona.
Nvidia’s Blackwell Chips has already begun production at TSMC’s chip plant in Phoenix, Arizona. Meanwhile, the company is working with Foxconn in Houston and Foxconn in Wistron in Dallas to build a manufacturing plant for its supercomputer. Mass production at these facilities is expected to rise in the next 12-15 months.
The production of Nvidia’s AI chips and supercomputers for American AI factories is projected to create hundreds of thousands of jobs decades ago and drive trillions of dollars in economic security. “The first time the world’s AI infrastructure engine has been built in the US. Adding American manufacturing will meet the incredibly growing demand for AI chips and supercomputers, strengthening the supply chain and increasing resilience,” said Jensen Huang, founder and CEO of Nvidia.
Until now, AMD products have been manufactured only at TSMC facilities in Taiwan. However, the company recognizes the need for a resilient supply chain, including both Taiwan and the US. “We want to have a very resilient supply chain, so while Taiwan remains a very important part of that supply chain, the US is also important and expands its work, including working with TSMC and other major supply chain partners,” Su said.
AMD is not alone in this effort. In addition to Nvidia, Apple has also announced that some of its chips will be produced at TSMC’s Arizona plant. This shift to domestic manufacturing is consistent with the US government’s efforts to reduce dependence on foreign suppliers and strengthen the country’s semiconductor industry.
In addition to its partnership with TSMC, AMD recently completed its acquisition of ZT Systems, a leading US AI server supplier.
Su emphasized that US manufacturing is an important priority for AMD as an American company. The company has many manufacturing partners, but without providing details, it has expressed its intention to find a strategic partner for ZT manufacturing companies.
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Lucas Nolan is a reporter for Breitbart News, which covers the issues of freedom of speech and online censorship.
