AMD expands Taiwan production capacity as CPU demand rises faster than expected, with significantly more capacity planned for 2027 and beyond.

CEO Lisa Su said the global CPU market is tight after demand came in much stronger than AMD expected a year ago. The company is working with Taiwan partners to increase supply every quarter this year.

The demand is being driven by AI inferencing and agentic AI (systems that can perform tasks more independently). AMD will invest more than $10 billion in Taiwan's AI sector, focusing on advanced packaging, substrates and manufacturing for rack-scale AI systems.

AMD is ramping production of its Venice CPUs using TSMC's 2-nanometer process technology, positioning the company to capture more data-center spending as customers seek alternatives and complements to Nvidia-led AI systems.