[News] AMD CEO Says TSMC Arizona Chips Cost Up to 20% More Than Taiwan’s but Are Worth It

At an AI event in Washington on Wednesday, AMD CEO Lisa Su stated that chips produced at TSMC’s Arizona plant cost “more than 5% but less than 20%” more than those made in Taiwan, according to Bloomberg. She also noted that AMD expects to receive its first batch of chips from the Arizona facility by year-end, the report adds.

However, Su emphasized that the added cost is justified, as it supports efforts to diversify the critical chip supply chain and reduce the industry’s vulnerability to disruptions like those experienced during the pandemic, according to the report.

According to Wccftech, AMD is among TSMC’s largest U.S.-based customers, having been one of the first to place 4nm orders with the Arizona facility. The company also plans to scale up to 2nm, particularly for its EPYC Venice data center CPUs, the report notes.

Meanwhile, as highlighted by Wccftech, Su stated that demand for AI chips remains strong, with partners placing orders at an unprecedented pace. She expects the total accelerator market could reach up to $500 billion in value over the next five years, according to the report.

Comments on the Easing of Certain AI Chip Export Restrictions to China

During the event, Su also addressed the recent easing of restrictions on AI chip shipments to China. According to Bloomberg, she noted that allowing exports to U.S. allies helps ensure that American technology remains foundational to AI systems worldwide.

On the same topic, Commerce Secretary Howard Lutnick stated that the U.S. is comfortable with allies purchasing a substantial number of chips and maintaining large server clusters. However, he pointed out that the size of these groupings and the degree of access U.S. companies have to them would be important considerations, as Bloomberg indicates.

Last week, NVIDIA announced that it had applied to sell its H20 chips in China and received assurances from the U.S. government that the necessary licenses would be approved, allowing deliveries to begin soon, as noted by CNN. Following this development, AMD confirmed that it is moving ahead with its MI308 chips. The company told Tom’s Hardware that its export license applications are now progressing and are expected to be approved. AMD plans to begin shipments as soon as the licenses are secured, the report adds.

Read more

• [News] AMD to Double Down on U.S. Output, with First Domestic Chip Set to Roll Out from TSMC Arizona
• [News] TSMC Speeds Up Arizona Expansion, yet U.S. Packaging Plant Sites Reportedly Remain Up in the Air

(Photo credit: AMD)