AMD CEO meets with TSMC CEO in Taiwan as it expands US chip output

AMD’s $10B commitment in Taiwan isn’t just about AI infrastructure—it’s a strategic lock-in to TSMC’s advanced packaging ecosystem, particularly CoWoS and InFO. This move directly addresses U.S. backend capacity gaps that threaten MI300X ramp timelines. Yet it heightens exposure to Taiwan-centric supply chain fragility amid escalating U.S.-China tech decoupling. NVIDIA will likely accelerate OSAT diversification through Samsung and Vietnam, while Intel leverages this vulnerability to secure subsidies for its Mexico and EU test facilities. Over the next 18 months, AI chip leadership will pivot from raw FLOPS to packaging resilience: control over high-yield 3D stacking at scale will dictate market power more than transistor density alone.