AMD plans to substantially increase supply in 2027, CEO says

AMD Targets Substantial Chip Supply Boost in 2027 to Meet Surging AI Demand

By Wen-Yee Lee

AMD’s Strategy to Address AI-Driven Chip Demand

TAIPEI, Oct 6 (Reuters) - AMD plans to substantially increase chip supply in 2027 as the US chipmaker races to meet booming demand from artificial intelligence, CEO Lisa Su said on Tuesday.

AMD, Nvidia's closest rival in AI graphics processors, has been rapidly expanding its AI chip business, with its market value recently topping $1 trillion amid an AI-driven rally.

Supply Chain Expansion and Partnerships

"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 told reporters in Taipei.

Ensuring Supply Chain Readiness

Su said one purpose of her Taiwan visit was to ensure AMD's supply chain could ramp up CPU and GPU production to meet growing AI demand. She has met Foxconn and is due to meet TSMC as part of discussions with local partners.

Collaboration with Memory Chipmakers

AMD is also working closely with memory chipmakers to secure sufficient supplies, Su said, ahead of a visit to South Korea later on Tuesday. South Korea is home to memory giants Samsung and SK Hynix.

Advanced Wafer Capacity and Future Planning

Potential TSMC Investment and Capacity Needs

Asked whether TSMC had discussed a potential investment in Texas with AMD, Su did not answer directly, but said the company would need additional advanced wafer capacity to meet strong demand.

"There's very, very high demand for the next several years. We can see very high demand, and so we need more advanced wafer capacity," Su said, adding that AMD was now planning three to five years ahead.

Reuters reported last week that TSMC is evaluating potential investment in Texas.

AI Opportunities and Risks

Benefits and Safety Concerns

Su also said AI could be "incredibly good for the world" but warned companies must remain mindful of risks and work together on AI safety.

Industry Coordination and Regulatory Steps

She said coordination among leading technology companies would be important as AI and superintelligence advance, describing last week's AI summit between US President Donald Trump and technology executives as an important step.

Companies attending the meeting agreed to work with "independent auditors" to assess whether AI systems are operating as intended by their designers, according to a copy of the agreement posted by Trump on his social media platform.   

(Reporting by Wen-Yee Lee. Editing by Miyoung Kim and Mark Potter)