AMD, the world’s second-largest maker of computer and graphic chips is increasing GPU and SoC productions at Taiwan-based chip foundry TSMC. The leading foundry’s revenue share taken by AMD had leaped by 5.2 percent reaching 9.2 percentage between 2019 to 2021 and may become the second largest customer, as data published by Seeking Alpha suggests.
TSMC Revenue Shares by Customer, year 2019 – 2021
AMD also surpassed Apple in becoming the largest 7nm outputs customer to TSMC.
Historically, AMD manufactured in-house designed chips and eventually separated itself from the manufacturing process. The manufacturing division formed GlobalFoundries Inc. in 2009. The two parties had a wafer supply agreement (WSA) in place for a decade, requiring AMD to make most chip products at GlobalFoundries until 2018 when GlobalFoundries decided to pull out of the 7nm process development.
AMD renegotiated the WSA with GlobalFoundries and was able to outsource all of the 7nm chip-making processes to TSMC without incurring penalties. Specific orders for TSMC 7nm wafers from AMD increased 80 percent this year compared to 2020, exceeding 7nm process orders from TSMC’s largest client – Apple which had been focusing on purchasing 5nm wafers. The AMD 14nm chip process, however, remains to be manufactured by GlobalFoundries.
Total revenue share from AMD has surpassed Qualcomm, Broadcom, and NVIDIA, becoming the second-largest customer of TSMC reaching 9.2 percentage, while Apple preserves the leading customer of TSMC with a distant 25 percent of revenue share. AMD’s increasing share of revenues will mean a better position for deal negotiations and better access to the latest nodes technology of TSMC.