Advanced Micro Devices (AMD) is one of the most recognizable names for graphics cards, along with Asus, NVIDIA, and MSI. However, gamers also know the brand for its central processing units (CPU), which gives them an alternative to the company’s longtime competitor, Intel. While AMD has its headquarters in Santa Clara, California, the company doesn’t manufacture any chips there.
Like many brands that supply computer components, AMD outsources manufacturing responsibilities overseas. Taiwan Semiconductor Manufacturing Co. (TSMC) makes all of AMD’s most advanced chips in, you guessed it, Taiwan. While not a household name, the company is one of the world’s top ten most valuable companies, manufacturing components for the advanced F-35 and NASA’s Perseverance Rover mission to Mars.
AMD isn’t the only brand TSMC provides manufacturing services for. The chips inside every iPhone also come from TSMC. If major brands don’t use TSMC, there’s a good chance they use another manufacturing company in Asia. In 2020, 79% of chip production around the world took place in Asia.
AMD is looking to make a change
William Potter/Shutterstock
Don’t put all your eggs in one basket, as the saying goes. AMD is taking that saying to heart. In July 2023, AMD CEO Lisa Su said, “We would like to use manufacturing [sites] across different geographies to give us some flexibility.” Rising tensions between China and America over Taiwan could cause supply disruptions, making this a beneficial decision.
However, Su also noted that it would be difficult to go with a different manufacturer since TSMC handles a good chunk of chip production, as Taiwain accounted for 48% of the foundry market in 2022. Whether AMD makes a deal with another manufacturer or not, they intend to continue using TSMC for all its best processors for your PC.
TSMC is expanding its operations into the U.S., where SU confirmed AMD will use some of the facility’s capacity, already alleviating supply chain concerns. Unfortunately, production in the Arizona facility won’t be ready until 2025. While the AMD CEO didn’t name any potential manufacturers, Samsung in South Korea, Taiwan’s United Microelectronics Corp., and GlobalFoundries in the U.S. are all possibilities.
