After NVIDIA, AMD also plans to manufacture chips in the US with TSMC

AMD will be leveraging TSMC’s advanced 2nm process technology to develop its next-generation AMD EPYC processor, codenamed “Venice”.

With tariffs on the semiconductor industry seemingly on the horizon, US chip companies have begun exploring options and capabilities needed to manufacture chips locally in the US. The semiconductor industry remains one of the most complicated industries as it requires components from various countries, often going through a lengthy supply chain route before reaching its final destination.

On Monday, NVIDIA announced plans to produce up to half a trillion of AI infrastructure in the US within the next four years. The production is expected to be handled by TSMC, Foxconn and Wistron, with mass production expected to ramp up in the next 12 to 15 months.

Last month, TSMC announced a US$100 billion investment plan to invest in advanced semiconductor manufacturing in the US. This includes the building and operations of three new fabs, two advanced packaging facilities and an R&D center in the US. The move is expected to support American companies such as Apple, NVIDIA, AMD, Broadcom and Qualcomm.

Following NVIDIA’s announcement, AMD has now become the latest American chip company to announce plans to manufacture its chips in the US. Specifically, AMD will be leveraging TSMC’s advanced 2nm process technology to develop its next-generation AMD EPYC processor, codenamed “Venice”. Venice will be the first HPC product in the industry to be taped out and brought up on the TSMC advanced 2nm (N2) process technology.

Expected to be launched next year, the development is also on track with AMD’s data center CPU roadmap. AMD also announced the successful bring up and validation of its 5^th Gen AMD EPYC CPU products at TSMC’s new fabrication facility in Arizona, underscoring its commitment to US manufacturing.

“TSMC has been a key partner for many years and our deep collaboration with their R&D and manufacturing teams has enabled AMD to consistently deliver leadership products that push the limits of high-performance computing,” said Dr. Lisa Su, chair and CEO, AMD.

“Being a lead HPC customer for TSMC’s N2 process and for TSMC Arizona Fab 21 are great examples of how we are working closely together to drive innovation and deliver the advanced technologies that will power the future of computing,” added Dr. Su.

For TSMC Chairman and CEO Dr. C.C. Wei, working together with AMD will drive significant technology scaling resulting in better performance, power efficiency and yields for high-performance silicon.

“We are proud to have AMD be a lead HPC customer for our advanced 2nm (N2) process technology and TSMC Arizona fab. We look forward to continuing to work closely with AMD to enable the next era of computing,” said Dr. Wei.

According to SEMI, a global semiconductor industry association, China, Korea, and Taiwan remained the top three markets for semiconductor equipment spending, collectively accounting for 74% of the global market in 2024. While investments have surged in China, Korea and Taiwan experienced modest increase in equipment spending with Taiwan experiencing a 16% decline.

Interestingly, North America recorded a 14% rise in semiconductor equipment investments, reaching US$13.7 billion, driven by increased focus on domestic manufacturing and advanced technology nodes.