AMD has announced that its key processor chips will soon be produced at TSMC’s new facility in Arizona, marking the first time AMD’s products will be manufactured in the United States. The news comes on the heels of AI giant Nvidia announcing it will produce AI chips and supercomputers in Arizona and Texas.
Reuters reports that AMD CEO Lisa Su revealed that the company’s fifth-generation EPYC CPUs for data centers will be manufactured at TSMC’s Arizona plant. This decision comes amidst growing concerns over the U.S.-China trade tensions and the potential impact of tariffs on the semiconductor industry.
The Trump administration’s investigation into whether semiconductor imports threaten national security has heightened the importance of such initiatives. The potential imposition of tariffs on these products has prompted tech companies to reevaluate their supply chains and explore alternative manufacturing locations.
As Breitbart News reported Monday, AI giant Nvidia is also ramping up production in Texas and Arizona:
Nvidia’s Blackwell chips have already started production at TSMC’s chip plants in Phoenix, Arizona. Meanwhile, the company is constructing supercomputer manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas. Mass production at these facilities is expected to ramp up within the next 12-15 months.
The manufacturing of Nvidia’s AI chips and supercomputers for American AI factories is projected to generate hundreds of thousands of jobs and drive trillions of dollars in economic security in the decades ahead. Nvidia founder and CEO Jensen Huang stated, “The engines of the world’s AI infrastructure are being built in the United States for the first time. Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”
Until now, AMD’s products have been exclusively manufactured at TSMC’s facilities in Taiwan. However, the company recognizes the need for a resilient supply chain that includes both Taiwan and the United States. “We want to have a very resilient supply chain, so Taiwan continues to be a very important part of that supply chain, but the United States is also going to be important, and we’re expanding our work there, including our work with TSMC and other key supply chain partners,” Su stated.
AMD is not alone in this endeavor. Besides Nvidia, Apple has also announced that some of its chips will be produced at TSMC’s Arizona plant. This shift towards domestic manufacturing aligns with the U.S. government’s efforts to reduce dependence on foreign suppliers and strengthen the country’s semiconductor industry.
In addition to the partnership with TSMC, AMD has recently completed the acquisition of ZT Systems, a leading supplier of AI servers in the U.S. This move further expands AMD’s footprint in the United States and underscores the company’s commitment to investing in the domestic market.
Su emphasized that U.S. manufacturing is a key priority for AMD as an American company. While the company has numerous manufacturing partners, she expressed AMD’s intention to find a strategic partner for the ZT manufacturing company, without providing further details.
Read more at Reuters here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
