AMD’s to pay $6.5 billion to TSMC, GlobalFoundries for 5nm, 6nm, and Other Mature Process Chip Capacities

According to the quarterly report shared by AMD on the 4th of May, the company intends to pay around $6.5 billion during the course of 2022 to its chip suppliers, which include TSMC and GlobalFounderies among others.

Previously, AMD has been planning on increasing its market share in server, desktop, and laptop processors and is expected to launch a newer generation of processors manufactured using the 5nm process technology offered by TSMC sometime later this year.

Nvidia has also reportedly used more than $10 billion to ask TSMC for 5nm and smaller process products for its upcoming GPUs, shifting from the former 8nm chips acquired from Samsung.

AMD, Intel, and Nvidia have all had to adjust and recalibrate their strategies and roadmaps to best seize TSMC’s advanced process capacities for manufacturing 5nm and below products, among rising competitiveness.

Compared to 2023 and other upcoming years, this is a huge payment growth, especially amidst the current global shortage of cores, and AMD plans to prepay around $1.9 billion for the next year, being priced in “billions” after 2024.

With AMD also investing this year to increase its product line and supply, the increased services from TSMC are a given result. The upcoming Ryzen 7000 CPUs and Radeon RX 7000 GPUs will be based on TSMC’s 5nm and 6nm process nodes. You can expect plenty of capacity for both even as every chipmaker on the block leverages the same node.


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