AMD plans to substantially increase chip supply in 2027 as demand continues to outstrip what it can deliver, CEO Lisa Su said during a visit to Taiwan. The company is seeking more advanced wafer and packaging capacity, while extending supply-chain planning to account for demand several years ahead.
Key takeaways
- AMD expects to raise supply substantially in 2027, but Su did not disclose a production target.
- Demand is running ahead of supply for CPUs as well as AI-focused products.
- Wafer capacity, advanced packaging and memory remain constraints across the supply chain.
- AMD is planning capacity three to five years ahead, up from a one-to-two-year horizon.
The announcement signals that AMD expects the current demand surge to persist, but does not specify how much additional capacity will come online or which products will receive it. For PC builders and gamers, the company has not said whether the planned increase will improve availability of consumer Ryzen CPUs or Radeon graphics cards.
Advanced capacity is the priority
Su said AMD has already expanded supply during 2026, yet demand remains higher than the company can meet. She cited a need for more advanced wafer capacity and said the company’s Taiwan supply-chain investment—announced at more than $10 billion in May—is set to grow. She did not provide a revised investment figure.
During the Taiwan trip, Su met with suppliers and technology partners, including Foxconn, Acer, Asus and Quanta, and was scheduled to meet TSMC executives. AMD plans to keep relying on manufacturing partners rather than build its own fabrication plant, according to reports of her remarks.
AI demand is lifting CPU needs
Su attributed part of the increase to wider enterprise adoption of AI and the emergence of AI agents, which can require substantial computing resources. She said demand for CPUs has also climbed, alongside demand for accelerators. AMD has previously forecast that the CPU market could exceed $120 billion by 2030, with annual growth above 35%, according to an interview report.
AMD said it began shipping its Helios AI systems in the third quarter and continues to see demand for more computing capacity as production ramps. The broader supply challenge includes high-bandwidth memory and advanced packaging, both important for AI server systems; increasing wafer output alone may not resolve those bottlenecks.
Supply gains will take time
AMD is now coordinating with suppliers three to five years in advance, compared with its earlier one-to-two-year planning window. That longer lead time reflects the difficulty of scaling wafer, packaging and memory capacity together. Su described demand as likely to remain very high for the next several years, but the company has not published a 2027 supply target or a product-by-product allocation plan.
For hardware buyers, the key unknown is where the additional output will go. AMD’s comments point to broad computing demand, but they do not confirm that consumer PC components will receive a larger share of production.
Via Reuters