AMD CEO Lisa Su
AMD CEO Lisa Su stated that demand for artificial intelligence chips is expected to remain strong, and the company plans to significantly expand its AI chip supply next year.

Taipei—Competition in the artificial intelligence (AI) chip market is intensifying, with AMD CEO Lisa Su saying the company plans to significantly increase AI chip supply in 2027 to meet growing demand from data centers and AI infrastructure worldwide.

Reuters reported that Su expects demand for AI computing to remain strong and said AMD is working aggressively to expand supplies of related products. As technology companies and cloud service providers around the world continue investing in AI data centers, demand for AI accelerators is rising rapidly, and AMD hopes to further increase its market share. (reuters.com)

AMD is currently challenging Nvidia's dominance of the AI chip market. In recent years, the company has launched its Instinct series of AI accelerators, targeting major cloud service providers and AI data center customers.

Su said AMD will continue expanding its AI chip supply capacity in the coming years. As generative AI, AI agents and large language models develop rapidly, businesses' demand for high-performance computing chips continues to grow.

The global AI boom has also driven rapid growth in data center capital spending. Major technology companies including Microsoft, Alphabet, Amazon and Meta continue to invest heavily in building AI data centers, boosting demand for AI chips, servers, networking equipment and advanced packaging.

AMD's expansion of AI chip supplies is significant for Taiwan's semiconductor industry. The production of AMD's high-end processors and AI accelerators involves Taiwan's semiconductor supply chain, while TSMC is one of the world's most important advanced foundries.

As AMD increases AI chip shipments, Taiwan's wafer manufacturing and advanced packaging, ABF substrates, PCBs, thermal management and server manufacturing industries could all continue to benefit from growing investment in AI infrastructure.

Nvidia currently leads the AI chip market, but AMD is actively expanding the competition. AMD hopes to attract major cloud service providers and other enterprise customers with next-generation AI accelerators offering improved performance and energy efficiency.

Market observers say competition between AMD and Nvidia will have a significant impact on the broader AI supply chain. If AMD can continue increasing its AI chip market share, the global AI accelerator market could develop a more diversified supply structure, potentially reducing some major customers' dependence on a single supplier.

However, rapidly growing demand for AI chips is also creating supply chain challenges. High-end chips require advanced process and advanced packaging technologies, and the relevant capacity must be planned in advance. Supply bottlenecks in wafer manufacturing, packaging or high-end memory could limit the overall pace of AI server shipments.

The market is also watching whether global investment in AI infrastructure can sustain its current rapid growth. Major technology companies are investing vast sums to build data centers, but if revenue growth from AI services falls short of expectations, they could adjust capital spending, affecting demand for AI chips.

Su remains relatively optimistic about the outlook for the AI market. She believes AI is still in a period of rapid development and that computing demand will continue to rise, requiring AMD to expand its supply capacity in advance to capture the next phase of market growth.

For Taiwan, AMD's expanded AI chip supply once again highlights the island's important role in the global AI supply chain. From wafer manufacturing and advanced packaging to AI servers and electronic components, Taiwan companies have become indispensable to the global AI industry.

With AI demand continuing to grow, additional orders from AMD and other AI chipmakers could further lift capacity utilization and capital spending across Taiwan's semiconductor and related electronics supply chains.

Markets will closely monitor AMD's AI chip shipment volume in 2027, orders from major customers and its competition with Nvidia. If investment in AI data centers remains strong, Taiwan's semiconductor industry could continue to be a major beneficiary of the global AI expansion.