AMD to Establish Two R&D Centers in Taiwan with a Total Investment of Up to $270 Million

AMD has announced plans to open two new research and development (R&D) centers in Taiwan, in collaboration with the local government, with a total investment estimated to reach $270 million.

AMD Expands in Taiwan, Leveraging Local Talent and Partnering with Supply Chain Experts

The strategic importance of Taiwan for major tech companies like NVIDIA and AMD is growing rapidly. With the increasing focus on AI technologies, these tech giants are deepening their collaboration with supply chain partners to ensure seamless integration and continuous progress. Following rumors about both NVIDIA and AMD setting up facilities in Taiwan, AMD has now confirmed its plans, which appear highly strategic.

According to the Taiwan Economic Daily, AMD’s project will include two R&D centers located in Tainan and Kaohsiung. The overall investment for these centers is projected to be approximately NT $8.64 billion, or around $270 million, with the Taiwanese government contributing around $100 million to support the initiative. AMD plans to collaborate closely with local universities and institutions to recruit top talent, with the new centers expected to create 400 jobs, including 200 international hires.

This surge of interest in Taiwan is part of a broader strategy implemented by the local government to transform the country into an “AI island,” offering a platform for companies to innovate and grow. Taiwan’s Global R&D Innovation Partnership Plan, which AMD is a part of, provides incentives such as tax relief and funding for tech companies establishing regional bases. AMD’s decision to set up these R&D facilities in Taiwan signifies a deeper commitment to the region, which we’ll explore further.

Recently, NVIDIA also highlighted the importance of Taiwan, frequently mentioning the country’s significance during its keynote, especially at Computex 2024. Furthermore, NVIDIA’s CEO hosted a special dinner with leading Taiwanese tech CEOs, including MediaTek and TSMC, celebrating the strong ties between these companies. This move underscores Taiwan’s pivotal role for NVIDIA, not just as a supply chain hub but as a key player in the tech industry. Consequently, AMD’s move to establish its presence in Taiwan is seen as a strategic alignment with industry trends.

NVIDIA is also in the process of developing its own R&D facilities. While the specifics of NVIDIA’s plans remain under wraps, rumors suggest the company may build a dedicated AI supercomputer for Taiwan. The developments in Taiwan could potentially reshape the market dynamics in the future, particularly in light of the complex regional dynamics, including the ongoing China-Taiwan conflict.