Advanced Micro Devices (AMD) will begin chip production at Taiwan Semiconductor Manufacturing Company’s (TSMC) facility in Arizona, marking the first time the company’s processors will be made on U.S. soil.
The announcement, delivered Tuesday by CEO Lisa Su in Taipei, signals a sharp pivot in AMD’s manufacturing strategy as the Trump administration ramps up scrutiny of foreign-made semiconductors. With Washington eying tariffs on chip imports over national security concerns, AMD joins a growing list of tech giants racing to localize operations amid mounting trade risks. (RELATED: Chips Giant Announces It Will Build New Supercomputers Entirely In The US)
“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,” Su said, according to an AMD press release. “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.”
Though AMD’s shift stateside has been in motion since before President Donald Trump returned to office, Su’s announcement comes as the administration prepares to invoke Section 232 of the Trade Expansion Act — a move that would allow the White House to impose sweeping tariffs on foreign chips if deemed critical to national security. A formal investigation was disclosed in a Federal Register filing Monday.
Until now, AMD has relied almost exclusively on TSMC’s facilities in Taiwan for its chip fabrication. But the transition to TSMC’s new Arizona facility, operational since late 2024 and also working alongside Apple and Nvidia, represents a broader push to localize in light of geopolitical and trade tensions.
Nvidia, a key AMD rival in the AI hardware space, announced Monday that it will manufacture AI supercomputers and Blackwell chips in the U.S. in partnership with TSMC and others — an effort that could see up to $500 billion in U.S. based AI server production over the next four years.
“This is very big and exciting news,” Trump said of the Nvidia investment. “All necessary permits will be expedited and quickly delivered to NVIDIA, as they will to all companies committing to be part of the Golden Age of America!”
AMD’s stateside expansion coincides with its March acquisition of ZT Systems, a U.S. server manufacturer, which Su said will help scale domestic output, according to Reuters. Apple has also confirmed limited chip production at the Arizona plant.
Ignoring history makes people look stupid even when they don’t realize their fate. Those of us who lived history remember the 70/80s when we were clamoring about high prices and urged companies to move their companies off shore to take advantage of lower labor costs. And at some time in the 90’s, didn’t we feel the benefit of those moves?
And now we are reversing course and moving all those jobs back to America where we don’t seem to realize we can’t set a minimum wage high enough. Here we are with mandated wage rates, high overtime requirements, paid-time-off up the ying-yang, PTO for your sick aunt’s border collie, …. Are we really this stupid?
All products will grow ever more expensive. All wages and benefits will increase, foreign laborers will lose jobs (except for bending paper clips), and bing-bong-a-bong-bing we can no longer afford the nicities of what was temporarily a balanced supply and demand.
I guess I’m just not woke enough. Can’t afford to be any more woke though. All the jobs I can handle at my age are night jobs at convenient stores – I’ll fall asleep in the middle of cashing out a customer or two. Good Night all.
Can’t we get these amateur social economists out of our government. I can’t afford to feed, cloth and shelter the neighborhood y’all. God’s sake, I am starting to look at Brussel sprouts as snack food. Dandelions looking pretty tasty at the moment.
These tariffs are much like that giant asteroid coming our way.
Hey folks, AMD (now global foundries) has been in the Malta, NY area for quite some time. (2010) The whole dredging of the upper Hudson was part of the infrastructure that required large amounts of relatively clean water for the semi conductor manufacturing process. Samsung has also a large footprint in the area. This isn’t anything new.