AMD Plans Major 2027 Supply Expansion

AMD plans to increase chip supply substantially in 2027 as demand for artificial intelligence computing continues to rise, intensifying the company’s push to secure manufacturing capacity and critical components across Asia.

Chief executive Lisa Su said AMD had already expanded supply through 2026 and expected a much larger increase next year. Speaking in Taipei, she said the company was working with manufacturing partners in Taiwan and South Korea to secure capacity for both CPUs and GPUs.

The expansion will depend heavily on access to advanced wafers, memory and packaging. AMD is working with TSMC and other suppliers, while Su is also due to visit South Korea, where Samsung Electronics and SK Hynix are among the world’s largest memory producers.

Su said demand for advanced computing is expected to remain strong for several years, requiring AMD to plan capacity three to five years ahead. That reflects the longer production cycles and heavier capital requirements now shaping the semiconductor industry as AI infrastructure expands.

AMD has been building its position in data-centre accelerators as it competes with Nvidia for a larger share of AI spending. Cloud providers and technology companies are increasing investment in high-performance computing, creating strong demand for graphics processors and supporting components.

The next phase of competition will therefore depend partly on how much hardware suppliers can deliver, not only on chip performance. Access to foundry capacity, high-bandwidth memory and advanced packaging has become central to meeting customer orders.

AMD’s planned 2027 expansion signals that the company expects AI demand to remain elevated. Its ability to convert that demand into revenue will increasingly depend on securing enough production capacity across the semiconductor supply chain.