AMD is committing more than $10 billion to expand advanced packaging capacity in Taiwan in partnership with TSMC to meet surging demand for high-performance AI accelerators.
On May 21, 2026, AMD announced an investment exceeding $10 billion (over NT$315.58 billion) into Taiwan’s semiconductor ecosystem. Over the coming years, the capital will target advanced chip packaging technology developed in partnership with TSMC and a roster of local manufacturing partners.
Rather than a speculative research pledge, the funding is structured to secure dedicated production capacity between 2026 and 2029. It centers on Elevated Fan-Out Bridge (EFB), a relatively new 2.5D packaging architecture.
EFB addresses critical connectivity bottlenecks in high-performance computing. By increasing interconnect bandwidth, the architecture enables faster data transfer between chips while reducing power consumption—both essential metrics for scaling AI infrastructure at AMD’s intended volume.
The investment directly supports AMD’s sixth-generation EPYC server processors, codenamed Venice, as they transition to TSMC’s 2nm manufacturing process. It also undergirds the Helios rack-scale AI platform, powered by Instinct MI450X GPUs, with AMD targeting multi-gigawatt deployments of that platform beginning in the second half of 2026.
Key manufacturing partners in the initiative include ASE/SPIL, PTI, and Sanmina, all established leaders in semiconductor assembly and packaging.
The move comes as Nvidia continues to rely heavily on TSMC’s Chip-on-Wafer-on-Substrate (CoWoS) technology. Constrained CoWoS capacity has recently emerged as a significant bottleneck across the broader AI chip market.
AMD’s EFB expansion represents a strategic effort to develop capacity in a comparable yet distinct packaging architecture. CEO Lisa Su characterized the initiative as a long-term commitment to strengthening Taiwan’s semiconductor ecosystem.
Su further noted that the Taiwan investment operates alongside AMD’s use of TSMC’s Arizona facilities, which are part of TSMC’s U.S. expansion program receiving support under the CHIPS Act framework.