AMD's Lisa Su: Global CPU demand exceeds supply, company expands production every quarter

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Global CPU market demand has exceeded expectations, and AMD is accelerating capacity expansion to address supply shortages.

According to Reuters, AMD CEO Lisa Su stated on Friday that the CPU market is currently in a tight supply situation, with demand far surpassing predictions made a year ago.

She said, AMD expects supply to continue increasing every quarter this year, with a significant expansion in supply scale in 2027 and beyond. Lisa Su attributed this round of demand growth to the rapid popularization of AI inference and agent AI.

The day before, AMD announced an investment of over $10 billion in the AI field to deepen strategic cooperation and expand the assembly and manufacturing capacity of advanced AI chips. The investment covers advanced packaging, substrates, and rack-level system manufacturing, with partners including ASE, SPIL, PTI, Wiwynn, Wistron, Inventec, Unimicron, AIC, Nan Ya PCB, and Kinsus among many others.

CPU demand exceeds expectations, market supply remains tight

At a forum in Taipei, she clearly stated: "Overall CPU market demand is far higher than any of our forecasts from a year ago. I think the CPU market is currently tight."

Lisa Su pointed out that the core driving force behind this round of demand expansion is the rise of agent AI. Unlike GPUs used for training large models, CPUs have once again become the focus of the market as enterprises and institutions are migrating to agent AI systems capable of autonomous functions, and the boundary of demand is expanding from GPUs to CPUs.

Taiwan capacity layout, investment locked through 2029

AMD stated that the focus of this investment in Taiwan is on advanced packaging, substrates, and rack-level system manufacturing. Lisa Su explained that since the delivery cycle of some investments is relatively long, partners need to lock in land, plants, and manufacturing capacity in advance, so AMD is co-investing with partners to ensure capacity expansion from 2026 onward, up to 2029.

On Thursday, AMD announced the mass production of the Venice CPU using TSMC's 2nm process technology.

Lisa Su stated that AMD's decision to bet on TSMC was a "very correct decision," and AMD's second major strategic judgment—that increasingly complex chip technology requires splitting chips into smaller units and integrating them through advanced packaging technology—has now become the mainstream path of the semiconductor industry.

Additionally, she revealed that China accounts for about 20% of AMD's revenue and is a "very important" market for AMD. She said that AMD will continue to maintain close cooperation with Chinese customers. Lisa Su stated: "Frankly, given the market size and our product portfolio, we will continue to maintain very close cooperation with Chinese customers."

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