AMD is preparing to ramp up chip production in 2027 in order to meet growing AI demand. The chipmaker increased its supply over the course of this year and plans to do the same next year, CEO Lisa Su told reporters in Taipei on Tuesday.
The purpose of Su's visit to Taiwan is to meet with local partners and get on the same page with regard to the supply chain as it pertains to CPU and GPU production. According to Reuters, she has already met with Foxconn and plans to do the same with TSMC in the near future. Su said AMD is also working closely with its partners in memory manufacturing to secure sufficient supply. She plans to meet face to face with memory suppliers in South Korea later this week.
Share value in AMD is up 3.98% as of writing on the news, with shares currently trading at $656.84. Year to date, AMD's stock has increased nearly 194% – a healthy increase.
The AI boom over the past couple of years has ravaged the supply chain and driven up prices for hardware across the board. Now, virtually everything in the consumer electronics space is way more expensive than it once was. Sony's PlayStation 5 Pro, for example, debuted at $700 in November 2020. Now, resellers like GameStop are selling refurbished units for twice that price ahead of GTA VI's launch next month.
Systems are also shipping with less memory than before. Earlier this month, HP introduced a new budget laptop designed to go toe to toe with Apple's entry-level MacBook Neo. Base configurations of the OmniBook 5 ship with just 8GB of memory, or roughly half the capacity that affordable machines used to carry before the AI era.
Major players are working overtime to boost production, with some going as far as to start construction on new manufacturing facilities. Even with the financial backing, building new factories takes years. As such, experts don't believe AI-fueled shortages will end anytime soon.
AMD vows to massively increase chip supply in 2027 as AI demand keeps growing
