AMD Is Investing More Than $10 Billion in Taiwan to Build Advanced Chip Packaging With TSMC. Here's What Lisa Su Is Actually Buying With That Money.

AMD will deploy over $10 billion in Taiwan between now and 2029 to expand advanced chip packaging, substrate production, and manufacturing capacity with partner TSM. CEO Lisa Su is making the bet to support data center revenue growth the company expects to exceed 60% annually and to prevent advanced packaging bottlenecks from capping AI hardware output despite robust customer demand.

The investment targets the post-fabrication stage where chiplets are assembled into complete processors, a critical step for AMD's MI300 AI accelerators and EPYC server chips. TSM provides both foundry services and advanced packaging through its CoWoS (Chip-on-Wafer-on-Substrate) platform, which AMD relies on for high-performance compute products. The multi-billion-dollar commitment signals AMD sees packaging capacity, not just wafer supply, as the constraint that could limit its ability to meet AI data center orders through the rest of the decade.

META and other hyperscalers have publicly cited long lead times for custom AI silicon, making supply chain control a competitive lever in the accelerator market.