Advanced Micro Devices, Inc (NASDAQ:AMD) moved deeper into the center of the global AI infrastructure buildout as CEO Lisa Su highlighted surging CPU demand, expanded partnerships across Taiwan’s semiconductor ecosystem, and accelerated next-generation chip production tied to AI inferencing and agentic AI workloads.

Lisa Su Says AI Demand Is Tightening CPU Supply

AMD CEO Lisa Su said the global CPU market is experiencing much stronger demand than the industry expected a year ago as companies rapidly expand AI infrastructure.

Speaking in Taipei, Su said AI inferencing and agentic AI workloads are driving the surge in CPU demand, pushing CPUs back to the center of data-center computing after years of focus on GPUs, Focus Taiwan reported on Friday.

She added that AMD is rapidly increasing production capacity and expects supply to expand every quarter this year, with much larger increases planned for 2027 and beyond, Reuters reported on Friday.

AMD Expands Taiwan AI Investments And Partnerships

On Thursday, AMD said it plans to invest more than $10 billion across Taiwan’s AI supply chain ecosystem to expand advanced chip manufacturing and packaging capacity.

Su said the investment will focus on advanced packaging, substrates, and rack-scale AI systems, while AMD co-invests with partners to secure long-term manufacturing capacity through at least 2029.

AMD said it is working with Taiwanese partners, including ASE, SPIL, PTI, Wiwynn, Wistron, Inventec, Unimicron, Nan Ya PCB, and Kinsus.

AMD Accelerates Next-Generation Venice CPU Production

AMD also confirmed it has started ramping production of its Venice CPUs using Taiwan Semiconductor Manufacturing Company Ltd’s (NYSE:TSM) 2-nanometer process technology.

Su said AMD’s early partnership with TSMC “has turned out to be a really great bet” as advanced chip manufacturing becomes increasingly important across the AI industry.

She added that AMD also benefited from betting early on advanced packaging technologies that combine multiple smaller chips into larger computing systems, an approach now widely adopted across the semiconductor industry.

Lisa Su Sees Massive Long-Term CPU Growth Opportunity

At the CommonWealth Magazine summit in Taipei, Su said the AI infrastructure market could exceed $1 trillion in the next three to four years as AI deployments expand across industries.

She projected that the CPU market could grow by more than 35% annually over the next five years as inference demand increases.

Su said AMD’s strength comes from offering a full AI infrastructure portfolio spanning CPUs, GPUs, and ASICs rather than relying on a single chip category.

She also said AMD’s Venice CPU family, built on 2-nanometer technology, targets cloud computing, throughput, and AI rack workloads through multiple processor designs.

China Remains A Key AMD Market

Su said China still accounts for roughly 20% of AMD’s revenue and remains an important market for the company.

After meeting Chinese Vice Premier He Lifeng in Beijing, Su said AMD plans to continue working closely with Chinese customers while complying with U.S. export restrictions on advanced AI chips.

Amkor Expands Packaging Collaboration With AMD

Amkor Technology, Inc (NASDAQ:AMKR) said it is working with AMD on advanced chip packaging as AI chip complexity and demand continue to rise.

Amkor CEO Kevin Engel said advanced packaging has become a major bottleneck in AI chip production as modern AI processors combine multiple chips into integrated systems, Reuters reported on Friday.

Engel added that Amkor is becoming more integrated with customers as it moves further into advanced packaging technologies, including work tied to TSMC’s Arizona operations.

AMD Price Action: Advanced Micro Devices shares traded higher by 2.60% at $461.26 during premarket trading on Friday. The stock is trading near its 52-week high of $469.21, according to Benzinga Pro data.

Photo via Shutterstock