AMD vows to massively increase AI chip supply in 2027 as demand surges
The purpose of Su's visit to Taiwan is to meet with local partners and get on the same page with regard to the supply chain as it pertains to CPU and GPU production. According to Reuters, she has already met with Foxconn and plans to do the same with TSMC... Read Entire Article
AMD is set to dramatically increase its AI chip production capabilities by 2027 to meet the skyrocketing demand, according to CEO Lisa Su. The company has been boosting its supply over the past year and aims to continue this trend in the upcoming year. Su made this announcement during a recent visit to Taipei, where she met with local partners to align on supply chain strategies for CPU and GPU production.
She has already engaged with Foxconn and plans to discuss further with TSMC in the near future. Additionally, AMD is collaborating closely with memory manufacturing partners to ensure a sufficient supply of memory components. Su plans to meet with memory suppliers in South Korea later this week. AMD's share price has risen by 3.98% since the news broke, currently trading at $656.84 per share.
Over the year, the company's stock has climbed nearly 194%, reflecting the soaring interest in AI technology. The surge in AI applications over the past couple of years has strained the supply chain and led to higher prices for consumer electronics hardware. This has caused a ripple effect, with products like Sony's PlayStation 5 Pro becoming significantly more expensive compared to their launch price in 2020.
Even budget laptops, such as HP's OmniBook 5, are now offering limited memory due to the AI boom. Industry experts predict that the AI-driven shortages and price hikes will persist for the foreseeable future, given the time and financial investment required to construct new manufacturing facilities.
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