According to market sources, following Apple's lead, AMD will also buy high-performance computing (HPC) chips from TSMC's Arizona fab Fab 21.

According to reports, AMD is already in the planning stage and plans to use TSMC's 5-nanometer process to produce HPC chips. The chip is expected to begin flow (tape out) and mass production in 2025. This cooperation is seen as an important development for the U.S. semiconductor industry.

Two years ago, Apple released the iPhone 14 Pro, but also introduced the A16 system-on-chip (SoC), and pilot production in TSMC's Arizona fab. Apple's A16 chip uses TSMC's N4P process, which is the same technology used for local production in Taiwan.

TSMC's Arizona fab has demonstrated strong technical capabilities from the outset, ensuring that it will be able to meet the needs of high-end customers. Apple's early involvement provides a model for other companies, such as AMD, to work with that can be trusted.

The report emphasizes that AMD's production of HPC chips at TSMC's Arizona facility has significance even beyond Apple. This is because the partnership represents the gradual establishment of a fully localized AI hardware supply chain in the U.S., which will provide a strategic advantage in the global AI competition. Especially in the context of rising geopolitical risks, such a supply chain can help the United States reduce its dependence on foreign supply chains.

U.S. server capacity is expected to expand significantly in early to mid-2025, which will further strengthen U.S. competitiveness in the global AI market.

Culpan also noted that TSMC's 5-nanometer process (including N5, N5P, N4, N4P, and N4X) is the marketing term for these chip processes, and that AMD will likely opt for the more advanced N4 process for high-performance computing chips. This indicates a significant increase in U.S. self-sufficiency in key technology areas, solidifying U.S. leadership in AI hardware production.

In addition to AMD's further involvement, Amkor Technology announced on October 4, 2023 that it has signed a Memorandum of Understanding (MOU) with TSMC, whereby the two companies will provide advanced packaging and testing services in Arizona. This partnership will facilitate the development of the local semiconductor ecosystem and enhance local capacity and technological capabilities.

Amkor and TSMC plan to jointly decide on the packaging technologies to be used in the partnership, such as TSMC's Integrated Fan-out (InFO) and Chip-on-Wafer Packaging (CoWoS) technologies, in order to meet the needs of common customers for higher-order capacity.