AMD expands R&D centers in Taiwan to accelerate AI chip innovation and development.

Advanced Micro Devices Inc (NASDAQ:AMD) has marked its new research-and-development centers in Tainan and Kaohsiung as part of a $270.5 million project to drive the development of artificial intelligence and silicon photonics technologies. The company received a subsidy of 3.31 billion New Taiwan dollars, representing about 38% of AMD's investment over three years. Minister of Economic Affairs J.W. Kuo met with AMD representatives led by David Wang, senior vice president of AMD's graphics processing unit technologies and engineering, in Taipei on Wednesday, according to the Taipei Times.

The locations are strategically positioned within Taiwan's semiconductor ecosystem. Tainan serves as a central manufacturing hub of Taiwan Semiconductor Manufacturing Co's (NYSE:TSM) 3-nanometer chips for AI devices, while Taiwan Semiconductor is building a new fab to produce next-generation 2-nanometer chips in Kaohsiung. This expansion reflects broader industry investment in the region, as AI chip giant Nvidia Corp (NASDAQ:NVDA) has set up its first AI R&D center in Taipei's Neihu District and is exploring sites for a second, likely in Kaohsiung.

AMD's performance in the AI sector has been significant. JPMorgan analyst Harlan Sur expects AMD to grow data center GPU revenue by over $5 billion in fiscal 2024. The stock has gained over 49% in the last 12 months, driven by the AI frenzy, and currently trades at a forward price-to-earnings of 46.3x compared to Nvidia's 48.3x. At last check Thursday, AMD stock traded lower by 0.18% at $157.33.