AMD Invests Over $10 Billion in Taiwan for AI Expansion
Advanced Micro Devices (NASDAQ: AMD) is committing more than $10 billion to bolster its supply chain in Taiwan, targeting over 60% annual revenue growth in its data center segment over the next 3 to 5 years. This investment, expected to continue through 2029, will enhance the semiconductor ecosystem in Taiwan, focusing on advanced packaging and manufacturing capabilities crucial for AI systems.
In the second quarter of 2026, AMD’s data center revenue surged 107% year-over-year to $6.7 billion, making up 58% of the company’s total revenue. The company’s Helios AI racks, which utilize 72 Instinct MI455X GPUs and 18 Venice CPUs, signify its aims for scaling production as it anticipates substantial demand from notable deployments by OpenAI, Meta Platforms, and Anthropic, totaling up to 14 gigawatts over several years.
CEO Lisa Su emphasizes the need for substantial manufacturing capacity, with AMD’s broader commitments reaching $30.3 billion primarily for supply agreements amid rising AI hardware demands. Despite being a fabless company, AMD is investing heavily to ensure it can meet expected growth in the AI market while aiming for a non-GAAP operating margin of over 35% in the coming years.
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