U.S. artificial intelligence processor maker AMD announced on Thursday that it will invest more than US$10 billion in Taiwan’s chip industry.
The company said it will “invest across the Taiwan ecosystem to expand strategic partnerships and expand advanced packaging capabilities for AI infrastructure.”
Taiwan is a manufacturing powerhouse of semiconductors used to train and drive artificial intelligence systems and is home to chip production giants TSMC and Foxconn.
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Nvidia – the world’s most valuable chip company and a rival of AMD – announced in February plans to build its first overseas headquarters in Taiwan.
The island’s economy soared last year as exports of artificial intelligence hardware surged, and the industry boomed globally.
AMD CEO Lisa Su will speak in Taipei on Friday and the company said in a statement that it is working with companies in Taiwan and elsewhere to develop advanced computing components essential for artificial intelligence data centers.
The company is “advancing leading chip, packaging and manufacturing technologies to enable higher performance, greater efficiency and faster deployment of artificial intelligence systems.”
The deals announced on Thursday include a hardware development partnership with Taiwanese chip packaging and test supplier ASE and its group partner Silicon Parts Precision Industries (SPIL).
Governments and tech giants around the world are investing hundreds of billions of dollars in new data centers to power artificial intelligence tools such as chatbots, image generators and agents that can perform tasks.
Concerns have been raised about the environmental impact of the AI infrastructure boom, with the International Energy Agency predicting that data center power consumption will double by 2030.
In addition to concerns about global warming carbon emissions, there are concerns about the water used to cool data center servers, which could lead to water shortages in hot weather.
- Vishakha Saxena Additional Editor AFP


