Global Market: AMD to increase AI chip supply substantially in 2027 to meet rising demand

Advanced Micro Devices plans to substantially increase chip supplies in 2027 as the U.S. semiconductor maker races to keep pace with surging demand for artificial intelligence processors, Chief Executive Officer Lisa Su said on Tuesday, Reuters reported.

AMD, Nvidia's closest rival in the market for AI graphics processors, has rapidly expanded its AI chip business as companies around the world increase spending on data centres and computing infrastructure. The company's market value recently surpassed $1 trillion amid a broader rally in AI-related stocks, Reuters reported.

Su said AMD had increased its supply during 2026 and was preparing for a much larger expansion next year. She made the comments to reporters in Taipei, where she is meeting key partners across the company's semiconductor supply chain.


A key objective of Su's Taiwan visit is to ensure that AMD's manufacturing network can scale up production of central processing units and graphics processors to meet rising AI demand. She has met Foxconn and is scheduled to meet Taiwan Semiconductor Manufacturing Co as part of discussions with local suppliers.

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Reuters reported that AMD is also working closely with memory-chip manufacturers to secure adequate supplies as demand for AI infrastructure accelerates. Su is scheduled to travel to South Korea later on Tuesday, home to leading memory-chip producers Samsung Electronics and SK Hynix.

AMD's growing requirements are also increasing the need for advanced semiconductor manufacturing capacity. Su said the company would need additional advanced wafer capacity to support demand and was now planning its supply requirements several years ahead.

Reuters reported last week that TSMC is evaluating a potential investment in Texas. Su did not directly comment on whether TSMC had discussed such an investment with AMD, but said the company's need for advanced wafer capacity was clear given the strength of demand expected over the coming years.

AMD's supply-chain expansion comes as the semiconductor industry races to build capacity for AI accelerators and other advanced processors. The company has been seeking to strengthen its position against Nvidia as demand for AI computing continues to drive investment by technology companies and data-centre operators.

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Su also highlighted the broader implications of rapid advances in AI, saying the technology could deliver significant benefits while warning that companies need to remain attentive to potential risks.

She stressed the importance of cooperation among major technology companies as AI systems become more capable, including the development of superintelligence. Su also pointed to a recent meeting between U.S. President Donald Trump and technology executives as an important step toward greater coordination on AI safety.

Companies at the meeting agreed to work with independent auditors to evaluate whether AI systems are operating as their designers intended, according to an agreement Trump posted on social media, Reuters reported.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)