Advanced Micro Devices CEO Lisa Su recently stated that global CPU demand is significantly exceeding expectations, driven by the rapid adoption of AI inference and intelligent agents, leading to tight supply conditions. AMD is accelerating its efforts to boost production capacity by expanding its investment footprint in Taiwan to meet continuously growing orders.
Speaking at an event in Taipei, Su noted that market focus over the past three to four years has been concentrated on GPUs, with CPU annual growth rates at only about 3% to 4%. However, with the explosive growth in AI inference demand, CPUs are set to regain center stage. She forecasted that the CPU market will grow by over 35% annually in the next five years. The company plans to increase supply each quarter and has already outlined significant production expansion plans for 2027 and beyond.
To support this, AMD announced on May 21 an investment exceeding $10 billion in the Taiwan AI ecosystem. This initiative aims to expand strategic collaborations with supply chain partners such as ASE, SPIL, and Powertech Technology to enhance advanced packaging manufacturing capacity for next-generation AI infrastructure. The investment will focus on areas including advanced packaging, substrates, and rack-level system manufacturing to ensure expansion capabilities through 2029.
Furthermore, AMD's next-generation EPYC processor, codenamed Venice, has entered mass production using Taiwan Semiconductor Manufacturing Company's 2-nanometer process, making it the first 2nm product in the high-performance computing sector to reach mass production. The AMD Helios rack-level platform, which combines the Venice CPU with the Instinct MI450X GPU, is expected to begin large-scale deployment in the second half of 2026.
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