AMD CEO Lisa Su has confirmed that the company is ready to begin chip production at the Taiwan Semiconductor Manufacturing Company's (TSMC) facility in Arizona. This move signifies a major step in expanding U.S. semiconductor production and diversifying AMD's supply chain. The Arizona facility, known as Fab 21, is part of TSMC's broader global expansion, which includes manufacturing sites in Japan and Germany. This strategic shift aims to mitigate geopolitical risks and address the increasing pressure to regionalize the production of critical components.
AMD's decision to manufacture chips in the U.S. aligns with broader industry trends amid heightened trade tensions and escalating tariff policies. The U.S. administration is currently investigating whether semiconductor imports pose a national security risk, potentially paving the way for new tariffs on foreign-made chips. This has prompted companies like AMD to seek more resilient supply chains.
According to reports, AMD's next-generation EPYC CPU, codenamed "Venice," will be the first high-performance computing (HPC) chip built on TSMC's advanced 2nm (N2) process. The company has successfully brought up and validated its 5th Gen AMD EPYC CPU products at TSMC's Arizona Fab 21, underscoring its commitment to U.S.-based manufacturing. AMD anticipates launching the "Venice" product in 2026.
Lisa Su emphasized that while Taiwan remains a crucial part of AMD's supply chain, the company is also increasing its U.S. presence, encompassing chips and AI servers. AMD's recent acquisition of ZT Systems, a major U.S.-based supplier of AI servers, for $4.9 billion in March, further demonstrates its commitment to expanding domestic operations and strengthening its position in the rapidly growing AI server market.
TSMC's Arizona fab is poised to become a major hub for U.S. semiconductor production. This facility is part of TSMC's strategy to diversify manufacturing outside of Taiwan and meet the rising demand for advanced chips in the U.S. market. The U.S. Department of Commerce awarded TSMC Arizona up to $6.6 billion in direct funding under the CHIPS and Science Act to support TSMC's investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona. TSMC intends to expand its investment in the United States to $165 billion.
AMD isn't the only chipmaker securing space at TSMC's Arizona fab. NVIDIA has also revealed plans to invest up to $500 billion in U.S. AI server production over the next four years and confirmed that its Blackwell chips are now rolling off the line at TSMC's Phoenix plant. Apple has also committed to being the site's largest customer.
The TSMC Arizona fab currently employs more than 3,000 people on 1,100 acres of land in Arizona. The site has been in volume production since late 2024. The expansion will play a crucial role in strengthening the U.S. semiconductor ecosystem by increasing American production of advanced semiconductor technology. It will also complete the domestic AI supply chain with TSMC's first U.S. advanced packaging investments.
