AMD CEO Lisa Su (in image) has confirmed the chipmaker is ready to begin production at TSMC Arizona facility, as demand surges in the U.S. | Credit: Jerod Harris / Stringer
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Key Takeaways
AMD is ready to begin production at TSMC’s Arizona plant amid rising geopolitical and economic pressures.
Donald Trump’s tariffs have forced tech giants to shift chip production to the U.S., creating a surge in demand at TSMC Arizona.
With both AMD and Nvidia relying on TSMC’s Arizona facility, limited capacity and rising costs may intensify competition.
Advanced Micro Devices (AMD) CEO Lisa Su has confirmed the U.S. chipmaker is ready to begin production at Taiwan Semiconductor Manufacturing Company’s (TSMC) Arizona facility.
The announcement follows a surge in demand from tech giants like Apple and Nvidia, spurred by the Trump administration’s sweeping tariffs on overseas chip production.
This sudden increased demand for the plant has pushed TSMC to hike its prices—raising questions over the potential rivalry between AMD and Nvidia.
AMD Moves Ahead With TSMC
Speaking outside the National Taiwan University in Taipei on Tuesday, April 15, Su stated that AMD is prepared to commence manufacturing at TSMC’s U.S. plant.
“When you think about the importance of the supply chain, we need to have a presence everywhere,” Su said. “Taiwan is critically important to us, but so is the United States.”
Su also revealed that AMD plans to boost its AI server capabilities in the U.S. following its recent $4.9 billion acquisition of server manufacturer ZT Systems.
As one of the world’s largest providers of personal computer processors, AMD relies heavily on TSMC to fabricate its chips.
Tariffs Drive Domestic Demand
The rise in domestic chip orders is a direct result of former President Donald Trump’s tough export tariffs.
These tariffs have pressured tech companies, who previously saw sourcing chips in the U.S. as a slower and more expensive route, have been forced to shift their chip sourcing to domestic facilities to avoid additional costs, according to a report by DigiTimes.
TSMC has responded to the influx of orders by raising the price of its 4nm chip production in the U.S. by 30%, citing the sudden imbalance between supply and demand.
The plant, which currently produces between 20,000 and 30,000 units monthly, is reportedly struggling to meet the spike in demand, which could lead to potential supply chain disruptions.
AMD vs. Nvidia: A Renewed Rivalry
Under Su’s leadership, AMD has transformed dramatically—growing from a near-bankrupt company valued at $2 billion in 2014 to a $172 billion tech powerhouse.
AMD surpassed Intel in market value in 2022 and now has its sights set on its primary competitor, Nvidia.
Despite its success with processors for Microsoft’s Xbox and Sony’s PlayStation, AMD still trails Nvidia in the booming AI chip market.
In an effort to catch up, Su pivoted AMD’s manufacturing strategy to use “chiplets”—smaller, modular chip components that are later assembled into a complete chip.
This approach has enhanced production flexibility and allowed AMD to use multiple foundries for different parts of the chip.
However, both AMD and Nvidia depend on TSMC for their chip fabrication, meaning the Arizona facility has become the new battleground.
With Nvidia’s $3 trillion market valuation and larger financial cushion, it may be better positioned to absorb TSMC’s price hikes and secure favorable production slots.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
