AMD to commence chip production at TSMC’s new U.S. site

EditorSenad Karaahmetovic
Published 04/15/2025, 04:37 AM
© REUTERS

Investing.com -- Advanced Micro Devices (NASDAQ:AMD) announced on Tuesday that its key processor chips will soon be produced at Taiwan Semiconductor Manufacturing Company’s (TSMC) new facility in Arizona. This marks the first time AMD’s products will be manufactured within the United States.

This decision by AMD was made before the return of U.S. President Donald Trump to office. His administration is currently investigating if semiconductor imports pose a threat to national security, which could potentially lead to tariffs being placed on these products.

The company’s fifth-generation EPYC, a central processing unit (CPU) for data centers, is performing well, according to AMD Chief Executive Lisa Su. She added that the company is ready to start production. Prior to this, AMD’s products were manufactured at TSMC’s facilities in Taiwan.

Other major tech companies, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have also started producing some of their chips at TSMC’s Arizona plant. Su highlighted that AMD had recently acquired ZT Systems, a leading supplier of AI servers in the U.S., further expanding its presence in the country.

Su emphasized the importance of a resilient supply chain, stating that while Taiwan continues to play a crucial role, the United States is also becoming increasingly important. She mentioned that AMD is expanding its operations in the U.S., including its work with TSMC and other key supply chain partners.

In other news, about 10 Boeing (NYSE:BA) 737 Max aircraft are set to join Chinese airline fleets, including two each for China Southern Airlines Co., Air China (OTC:AIRYY) Ltd., and Xiamen Airlines Co. This information is based on data from Aviation Flights Group. Some of these jets are currently stationed near Boeing’s Seattle factory, while others are at a finishing center in Zhoushan, eastern China.

China is expected to account for 20% of global aircraft demand over the next two decades. In 2018, nearly a quarter of Boeing’s production was shipped there. However, due to trade tensions and internal issues, Boeing has not announced a major order in China in recent years.

On Friday, China announced it will impose a 125% tariff on all U.S. goods starting from April 12. This is the latest development in a trade war that began when Trump imposed a U.S. surcharge aimed at reducing America’s trade deficit.

After factoring in a 20% levy assessed earlier this year over China’s role in fentanyl trafficking, the total U.S. tariff rate on China now stands at 145%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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