Data News > Pre Market Movers: AMD Moves Production to US Amid Trade Uncertainty

Pre Market Movers: AMD Moves Production to US Amid Trade Uncertainty

By KlickAnalytics Data Insights  |   April 15, 2025 08:10AM ET

Key Points

- AMD to manufacture key processor chips in the US for the first time
- Utilizing TSMC's new facility in Arizona
- Shift in supply chain away from Asia due to geopolitical tension
- AMD's response to trade uncertainty under Trump administration
- First steps towards onshoring production in the US

Advanced Micro Devices Inc. (NASDAQ:AMD, ETR:AMD) is making a significant move by shifting the production of its key processor chips to the United States. This decision comes as a response to the growing geopolitical tension and trade uncertainty, especially after the recent tariffs imposed by the Trump administration. AMD will be utilizing Taiwan Semiconductor Manufacturing Company's (TSMC) new facility in Arizona for this production, marking a notable expansion of its supply chain beyond Asia.

The move to shift production to the US is a strategic decision by AMD, as it looks to navigate the changing global trade landscape. By onshoring production, AMD aims to mitigate the risks associated with relying heavily on Asian manufacturing facilities. This step will not only help AMD reduce its exposure to potential trade disputes but also strengthen its position in the US market.

The decision to manufacture key processor chips in the US is a significant milestone for AMD, as it marks the company's first steps towards onshoring production in the country. This move is expected to create more job opportunities in the US and contribute to the growth of the local economy. Additionally, by leveraging TSMC's new Arizona facility, AMD is enhancing its manufacturing capabilities and ensuring a more robust supply chain.

AMD's move to manufacture processor chips in the US reflects a trend among tech companies to diversify their production locations and reduce their reliance on Asian manufacturing hubs. With the growing uncertainty in global trade relations, companies like AMD are looking for ways to secure their supply chains and minimize the impact of geopolitical tensions on their operations. By taking this step, AMD is not only adapting to the changing business environment but also positioning itself for long-term growth and stability.

In response to the ongoing trade uncertainty and geopolitical tensions, AMD's decision to shift production to the US is a strategic move that aligns with the company's long-term objectives. The shift to onshore manufacturing reflects AMD's commitment to innovation, resilience, and adaptability in the face of evolving market dynamics. By leveraging TSMC's new Arizona facility, AMD is taking proactive steps to strengthen its supply chain and enhance its competitiveness in the global market.

About AMD
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. The company provides processors for desktop and notebook personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, and AMD PRO A-Series processors brands; discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics, AMD Embedded Radeon graphics brands; and professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands. It also offers Radeon Instinct, Radeon PRO V-series, and AMD Instinct accelerators for servers; chipsets under the AMD trademark; microprocessors for servers under the AMD EPYC; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

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