AMD plans to establish two R&D centers in Taiwan in cooperation with the local government. The total investment is expected to be $270 million.

AMD now wants to establish itself in the heart of Taiwan by recruiting local talent and working with supply chain partners

The strategic importance of Taiwan for established technology companies like NVIDIA and AMD is growing more than ever. As the AI ​​hype increases, the tech giants are working more closely with their supply chain partners to ensure greater collaboration and, of course, to monitor overall progress. Following rumors that both NVIDIA and AMD are setting up their facilities in Taiwan, we now seem to know Team Red’s implementation plans, and they certainly look interesting.

According to Taiwan Economic Daily, AMD plans to set up two research and development facilities in Taiwan, one in Tainan and one in Kaohsiung. Team Red’s total project is expected to cost around NT$8.64 billion, or about US$270 million, with the Taiwanese government contributing around US$100 million to support the initiative. AMD plans to partner with local universities and institutes to recruit skilled workers, with strategic locations. The facilities are expected to create 400 jobs, including 200 globally.

This sudden interest in Taiwan is a plan by local governments to turn the country into an “AI island” and provide companies with a platform to advance in the markets. Taiwan has offered a Global R&D Innovation Partnership Plan, which AMD is a part of. This allows technology companies to set up regional offices, with the government offering incentives in the form of tax breaks and funding. Team Red’s decision to set up R&D facilities in Taiwan is of far greater significance, and we’ll cover this in more detail below.

Recently, we talked about how NVIDIA reiterated the importance of Taiwan and mentioned the country’s presence several times during its keynote, especially at Computex 2024. In addition, NVIDIA’s CEO hosted a special dinner where he invited all Taiwanese tech CEOs, including MediaTek and TSMC, to celebrate the occasion. However, this showed that Team Green has realized that Taiwan is much more to them than just a marketplace for supply chain resources. Ultimately, this is what prompted AMD to jump on the bandwagon

NVIDIA is also in the process of setting up R&D facilities. While we haven’t seen the company’s plans yet, they will surely be top-notch. Rumors suggest that the company will build a dedicated AI supercomputer for Taiwan. It will be interesting to see how Taiwan changes the market dynamics in the future, especially considering regional dynamics, including the China-Taiwan conflict.

News source: mynavi.jp