TAIPEI — AMD chief executive Lisa Su said Tuesday that the company plans to "substantially increase" its chip supply in 2027, telling reporters during a visit to Taiwan that demand for CPUs, GPUs and AI accelerators still outruns what the company can actually build.
"We've been able to increase our supply as we've gone through 2026, and we're going to substantially increase our supply in 2027," Su said, according to Reuters. She said one purpose of the trip was to make sure AMD's supply chain could ramp CPU and GPU production to meet growing AI demand. AMD has met executives at Foxconn, Quanta, Asus and Acer, and was due to travel to Hsinchu to meet TSMC before heading to South Korea, home to memory makers Samsung and SK Hynix, later in the day.
The visit put numbers on something AMD had previously described only in general terms. In May the company committed more than \$10 billion to Taiwan's technology supply chain; Su said that investment is progressing as planned but that AMD now expects to spend more as demand keeps rising. She also said AMD has stretched its planning horizon with suppliers from one to two years out to three to five years — an acknowledgment that wafer, packaging and substrate capacity now has to be booked years in advance.
Memory, not logic, is the sharpest edge of the shortage. Su said the memory market remains "quite tight" and that AMD is working with suppliers and customers to secure the high-bandwidth memory AI servers need as well as the DRAM that goes into CPUs and PCs. Asked whether TSMC had discussed a potential investment in Texas with AMD, she did not answer directly, saying only that AMD would need additional advanced wafer capacity because demand for "the next several years" is "very, very high."
Su also waded into the safety debate that has run through the industry over the past week. AI could be "incredibly good for the world," she said, but companies have to stay mindful of the risks, and coordination among the leading developers matters. She described last week's summit between President Trump and technology executives as an important step, noting the companies agreed to work with independent auditors to assess whether AI systems behave as their designers intend.
The supply message lands at a moment when AMD's scale has changed. The company's market value recently crossed \$1 trillion amid the AI rally, and its second-quarter results showed revenue up about 50% year over year to roughly \$11.5 billion, with data-center revenue doubling, according to company figures reported in the region. AMD has guided third-quarter revenue to about \$13 billion, up 41% year over year.
What Su is really describing is a supply chain that has stopped being a procurement function and become a strategic one. Booking advanced wafer capacity three to five years out, locking HBM supply with Samsung and SK Hynix, and sitting down with Foxconn and Quanta to align system volumes are the same moves Nvidia made earlier in the cycle. The difference is that AMD is doing it while also integrating World Labs and building out an agentic-PC story — three workstreams that all draw on the same constrained manufacturing base. If 2027 supply really does rise substantially, the constraint moves from silicon to memory and power. If it does not, a \$1 trillion valuation will be carrying a great deal of expectation.
Comments (0)
Log in to join the discussion
Log InNo comments yet