AMD is reportedly looking for other CoWoS suppliers as Taiwanese giant TSMC reaches full production amid strong industry demand. While TSMC is busy supplying CoWoS to NVIDIA, AMD is now focused on finding alternatives for the production of its InstinctMI300 AI accelerator card.
According to Taiwanese media CTEE, as TSMC has been busy responding to industry orders, especially orders from NVIDIA, AMD has decided to look for alternatives to TSMC in obtaining CoWoS supplies. The Taiwanese giant is currently unable to meet demand, especially for CoWoS packaging, as the company's equipment has not yet reached the "required" production volumes. However, even if TSMC chooses to expand production, it is likely to cater to Nvidia's needs, so AMD has decided to choose other sources, and there are currently multiple candidates.
It is reported that companies such as ASE Investment Holdings, Power Technologies, KYEC Electronics and Winbond Electronics may become AMD's next CoWoS suppliers because the above companies have opened their facilities and have begun production.
This move by TeamRed has proven to be very beneficial as it will not only make its products more competitive by ensuring seamless supply, but also bring more profits to AMD. At the same time, AMD and TSMC are very good partners, and both parties will continue to work hard to increase production capacity, but this will take time.
AMD hasn't had the same success in the artificial intelligence market as its rival NVIDIA, but the company appears poised to take an aggressive stance. The company just recently showed how its Instinct GPUs are starting to catch up to Nvidia's offerings, not only in terms of performance, but also in terms of having an optimized AI software stack. If the chipmaker can successfully position its AI products on par with Nvidia's offerings and ensure continued supply, it does have a prime opportunity to attract customer interest.