The chip war is heating up.
Advanced Micro Devices (AMD) has announced it will begin manufacturing its chips at Taiwan Semiconductor Manufacturing Company’s (TSMC) Arizona facility. This marks the first time AMD processors will be produced in the United States. The shift is part of a broader strategy to move production closer to home, especially as the U.S. government intensifies its focus on national security risks tied to foreign-made semiconductors. The Biden administration is exploring tariffs on imported chips, and companies like AMD are responding by strengthening domestic operations.
AMD CEO Lisa Su highlighted the company’s long-standing relationship with TSMC and its shared efforts to push the boundaries of high-performance computing. She emphasized AMD’s leadership role in utilizing TSMC’s advanced chip-making technologies, including its N2 process. Su said the collaboration at the Arizona Fab 21 plant demonstrates how closely AMD and TSMC are working together to support innovation and bring advanced technologies to the U.S.
The move is not isolated to AMD. Nvidia, a major competitor in the AI chip market, also recently announced plans to manufacture AI supercomputers and chips domestically. The project, in collaboration with TSMC and others, could result in up to $500 billion in U.S.-based AI infrastructure over the next four years. These developments reflect a growing trend among tech giants to bring production stateside amid escalating geopolitical risks and trade uncertainties.
AMD’s transition to U.S. manufacturing is further supported by its recent acquisition of ZT Systems, a domestic server manufacturer. This acquisition is expected to help the company scale its American production capabilities. Additionally, Apple has confirmed limited chip production at the Arizona site, underscoring the strategic importance of localizing semiconductor supply chains.
Overall, these shifts mark a significant realignment in the tech industry’s manufacturing landscape. With the U.S. government preparing to enforce trade measures and the tech sector looking to secure its supply chains, more companies are likely to follow AMD’s lead in building a stronger production base within the United States.
