amd switches 4nm chip orders: samsung out, tsmc arizona in

2025-05-07 tsmc

Phoenix, Wednesday, 7 May 2025.
amd is reportedly moving its 4nm chip production from samsung to tsmc’s arizona plant. this decision impacts samsung’s foundry business and strengthens tsmc’s market position. the shift is allegedly due to samsung’s inability to meet amd’s production demands and yield requirements. tsmc’s arizona facility is already producing 4nm chips, including those for amd’s ryzen 9000 series cpus. this move also aligns with a trend of major chipmakers reducing trade risks amid potential us tariffs.

tsmc gains manufacturing capacity

TSMC’s Arizona Fab 21 has commenced high-volume 4nm chip production, achieving yield rates comparable to its Taiwan facilities [5]. This expansion strengthens TSMC’s manufacturing capacity and its ability to meet the demands of major clients like AMD, Nvidia, and Apple [3][5][7]. The shift from Samsung allows TSMC to consolidate its position as a leading chip manufacturer, attracting interest from various brands due to its advanced processes [3]. AMD’s decision to consolidate production with TSMC highlights the advantages of US-based manufacturing and TSMC’s manufacturing prowess [3].

geopolitical risk mitigation

The move to TSMC’s Arizona facility helps mitigate geopolitical risks for AMD and other major chipmakers [7]. With potential US semiconductor tariffs looming, manufacturing in the US reduces future trade risks [1][7]. Yu Maochun, Director of the China Center at the Hudson Institute, highlighted the US focus on national security, further emphasizing the importance of domestic manufacturing [1]. This strategic shift aligns with a broader trend among major tech companies to diversify their manufacturing locations and reduce reliance on specific regions [7].

impact on tsmc’s market leadership

AMD’s decision reinforces TSMC’s market leadership and its ability to secure key partnerships [4]. TSMC has secured access to AMD’s upcoming 2nm process for its next-generation Epyc Venice processors, demonstrating a deepening relationship [3][4]. The company is attracting interest from major players like Nvidia and Apple, solidifying its position as a preferred foundry [3][7]. TSMC’s ability to deliver advanced process technologies and meet production demands strengthens its competitive edge in the semiconductor industry [3].

financial implications for tsmc

Analysts suggest the appreciation of the New Taiwan dollar (NTD) could negatively affect Taiwanese tech companies like TSMC, as their revenue is primarily in USD while costs are in NTD and other currencies [1]. On May 5, 2025, the NTD rose sharply, reaching 29 against the USD before closing at 30.145, an increase of 9.19 cents [1]. However, the increased orders from AMD and other major clients could offset some of these currency-related challenges, boosting TSMC’s overall revenue and market share [3][7].

Bronnen

manufacturing capacity client relationships