Advanced Micro Devices (AMD) is preparing to initiate chip production at Taiwan Semiconductor Manufacturing Company’s (TSMC) new facility in Arizona, signaling a strategic shift as the U.S. government considers new tariffs on imported semiconductors.
Speaking at National Taiwan University in Taipei on Tuesday, AMD CEO Lisa Su confirmed the company’s readiness to begin manufacturing at the U.S.-based plant. Su emphasized AMD’s commitment to bolstering domestic semiconductor production, especially for high-demand products like AI servers.
“We are ready to start production at TSMC’s Arizona fab and certainly plan to expand our AI server capabilities in the U.S.,” Su told reporters.
The announcement comes as former U.S. President Donald Trump, currently campaigning for reelection, revealed plans to unveil new tariffs on imported semiconductors later this week. He hinted that some companies may receive exemptions, suggesting potential negotiations for firms like AMD that have deep ties to overseas manufacturers.
AMD remains heavily reliant on TSMC’s advanced fabrication technology in Taiwan for its chip production. TSMC is the world’s largest contract chip maker and a vital player in the global semiconductor supply chain. However, growing geopolitical tensions and the push for supply chain resilience have encouraged U.S. chipmakers to explore domestic manufacturing options.
The Arizona plant, a major investment by TSMC, represents a step toward reducing dependency on Asian supply chains and aligning with U.S. policy goals to strengthen semiconductor self-sufficiency.
With the AI hardware market booming and national security concerns influencing industrial policy, AMD’s move is seen as both strategic and timely. By leveraging TSMC’s capabilities on American soil, AMD is positioning itself to weather potential trade disruptions while staying at the forefront of next-generation chip development.
