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AMD’s Lisa Su sees chips from TSMC’s Arizona plant costing 5% to 20% more
The Advanced Micro Devices CEO says the company’s first chips from TSMC’s US facilities are expected by the end of the year
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Advanced Micro Devices (AMD) chair and CEO Lisa Su said that the integrated circuits her company gets from supplier Taiwan Semiconductor Manufacturing Co (TSMC) cost more when these are produced in the chipmaker’s Arizona facilities.
Compared with similar parts from factories in Taiwan, the US chips will be “more than 5 per cent but less than 20 per cent” in terms of higher costs, she said at an artificial intelligence (AI) event in Washington on Wednesday. AMD expects its first chips from TSMC’s Arizona facilities by the end of the year, Su said.
The extra expense is worth it because AMD is diversifying the crucial supply of chips, Su said in a Bloomberg Television interview after her onstage appearance. That will make the industry less prone to the type of disruptions experienced during the pandemic.
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“We have to consider resiliency in the supply chain,” she said. “We learned that in the pandemic.”
TSMC’s new Arizona plant is already comparable with those in Taiwan when it comes to the measure of yield – the amount of good chips a production run produces per batch – Su told the audience at the forum.
The AI event was hosted by the All-In Podcast team and a consortium of technology leaders and lawmakers known as the Hill and Valley Forum. US President Donald Trump and other administration officials also appeared at the venue to discuss the roll-out of their “AI action plan”.
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