AMD To Establish Two R&D Facilities In Taiwan, Total Cost Reaching Up To $270 Million

AMD plans to set up two R&D centers in Taiwan in collaboration with the local government, with total investments planned to be $270 million.

The strategic importance of Taiwan for mainstream tech companies like NVIDIA and AMD is growing more than ever. With the AI hype coming into play, tech giants are moving towards closer collaboration with their supply chain partners to ensure a more extensive collaboration and, of course, monitor overall progress. After rumors of both NVIDIA and AMD setting up their facilities in Taiwan, it looks like we now have Team Red's plans of execution, and they sure look interesting.

Taiwan Economic Daily reports that AMD plans to establish two R&D facilities in Taiwan, one in Tainan and the other in Kaohsiung. Team Red's overall project is said to cost around NT $8.64 billion or around $270 million, with the Taiwan government pouring in around $100 million to support the initiative. With strategic locations, AMD aims to collaborate with local universities and institutes to hire professionals, and it is said that the facilities will bring in 400 jobs, including 200 global hiring.

This sudden interest in Taiwan is a plan implemented by the local governments to convert the nation into an "AI island," providing companies with a platform where they can progress in the markets. Taiwan has offered a Global R&D Innovation Partnership Plan, which AMD is a part of, that allows tech companies to set up regional bases, with incentives provided by the government in the form of tax relaxation and funding. Team Red's decision to establish Taiwan R&D facilities is of much more importance, which we'll discuss ahead.

Recently, we talked about how NVIDIA reiterated Taiwan's importance and mentioned the country's presence multiple times throughout its keynote, notably at Computex 2024. Moreover, NVIDIA's CEO held a special dinner, inviting all Taiwanese tech CEOs, including MediaTek and TSMC, to celebrate the occasion, but this showed that Team Green has realized that Taiwan is a lot more for them than just a marketplace for supply chain resources. Ultimately, this has prompted AMD to jump into the bandwagon

NVIDIA is also on its way to developing R&D facilities. While we haven't seen the firm's plans yet, they're certainly going to be top-end, with rumors that the firm will build a dedicated AI supercomputer for Taiwan. It will be interesting to see how Taiwan reshapes the market dynamics in the future, especially when considering the regional dynamics, including the China-Taiwan conflict.

News Source: mynavi.jp