AMD CEO Lisa Su has said the company is comfortable with its current supply of CoWoS advanced packaging from TSMC, an important component in producing high-performance AI chips. However, she also pointed out that memory is becoming a new area of pressure as demand for artificial intelligence hardware continues to accelerate.
CoWoS, short for Chip-on-Wafer-on-Substrate, is a key packaging technology used in advanced processors and AI accelerators. It allows multiple chip components to be placed closer together, improving performance and efficiency. As AI workloads grow more demanding, this type of advanced packaging has become essential for companies competing in the data center and AI hardware market.
Su’s comments suggest that AMD has managed to secure enough CoWoS capacity for its near-term needs, easing concerns about one of the most talked-about bottlenecks in the semiconductor industry. TSMC’s advanced packaging capacity has been under heavy demand as major chipmakers race to produce more AI accelerators for cloud providers, enterprise customers, and large-scale computing systems.
While packaging supply appears stable for AMD, memory is now emerging as another challenge. Modern AI chips depend heavily on high-bandwidth memory, often known as HBM, to process massive datasets quickly. As AI models become larger and more complex, demand for this specialized memory has surged.
This growing pressure on memory supply could affect how quickly AI chipmakers can scale production. Even if companies have enough silicon and packaging capacity, limited access to advanced memory can still slow down shipments or increase costs. For AMD, which is expanding its presence in the AI accelerator market, securing reliable memory supply will be just as important as maintaining access to advanced manufacturing and packaging.
The broader AI chip supply chain remains highly competitive. Demand from cloud computing companies, data centers, and enterprise AI projects continues to rise, creating pressure across multiple parts of the semiconductor ecosystem. Advanced packaging, leading-edge manufacturing, and high-bandwidth memory are all becoming critical factors in determining which chipmakers can meet customer demand.
AMD’s position appears cautiously optimistic. The company is satisfied with its current CoWoS supply from TSMC, but Su’s remarks make it clear that the AI hardware boom is shifting supply chain pressure from one area to another. As the market continues to grow, memory availability may become one of the most important issues shaping the next phase of AI chip production.
