AMD CEO Lisa Su said Tuesday in Taipei that the company will increase the $10 billion it pledged in May to spend with Taiwan's supply chain, because demand for its chips keeps climbing, Focus Taiwan reported. She did not say how large the new commitment will be.

What Happened

Su arrived in Taiwan Tuesday morning, her third visit this year, according to the Central News Agency report. She met with PC and server makers Acer, Asus, Foxconn and Quanta before traveling to Hsinchu to see TSMC and other suppliers, including back-end manufacturing partners and substrate makers.

She said the May investment plan is on track and that AMD would raise the amount going forward as demand rises. Demand for CPUs grew substantially in 2026, she said, and even with added capacity, demand for both CPUs and GPUs has outstripped supply. AMD plans to increase its supply substantially in 2027, Su said, but could still use more.

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Su said AMD began shipping its Helios AI platform, a rack-scale system built around its Instinct accelerators, in the third quarter as scheduled and plans to ramp shipments in the coming quarters.

To keep the supply chain in step, AMD has stretched its planning horizon with partners from one to two years to three to five years. Su said AMD will remain a fabless company, coordinating capacity with suppliers rather than investing directly in its own factories, while acknowledging the progress TSMC has made at its Arizona site.

Why It Matters

AI hardware makers are competing for the same constrained inputs: leading-edge wafers and advanced packaging at TSMC, substrates and high-bandwidth memory. Su said HBM supply remains tight and that AMD is working with suppliers on its memory needs for AI servers as well as conventional memory. Longer planning commitments are one way a fabless company can secure a larger share of that capacity, by giving suppliers enough visibility to justify their own expansion.

Helios matters because it puts AMD in direct competition with Nvidia's rack-scale systems for large AI data center orders. Hitting its third-quarter shipping target is an important signal to customers that have committed to the platform, and the shipments depend on the same Taiwanese partners Su visited this week, from TSMC for chips to Foxconn and Quanta for server assembly.

Context

Su called Taiwan "absolutely critical" to the semiconductor supply chain and to AMD in particular. Her comments come as U.S. chip companies face political pressure to expand production at home. AMD's answer, as described by Su, is to keep relying on Taiwanese partners while pointing to TSMC's Arizona operations as evidence that some of that capacity is also being built in the U.S.

What to Watch

The open questions are how large AMD's revised Taiwan commitment will be, which partners receive the longer three- to five-year agreements and whether HBM supply loosens enough for AMD to ramp Helios as planned. AMD's next quarterly results should give a fuller view of how supply constraints are affecting CPU and GPU sales.