By Adam Clark

Advanced Micro Devices is manufacturing data-center chips in the U.S. It's another sign of semiconductor fabrication moving stateside as the sector faces tariff risks.

AMD said Tuesday that some of its central-processing units (CPUs) for data centers will be made at Taiwan Semiconductor Manufacturing's site in Arizona, the first time the chip maker's products will be made in the U.S.

That comes hard on the heels of AMD's rival Nvidia saying it plans to build artificial-intelligence supercomputers in the U.S. Both companies look to be diversifying their production away from Taiwan in the face of potential levies on chip imports.

The Trump administration is investigating imports of semiconductors on national security grounds, according to a notice posted Monday to the Federal Register. The filing is set to be published on Wednesday and shows the probe will be carried out under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs on goods deemed essential for national security.

AMD stock was down 0.1% at $94.39 in premarket trading on Tuesday.

AMD also said that its next-generation EPYC processor -- code-named 'Venice'-- is the first high-performance computing product to have its design finalized for manufacturing on TSMC's 2-nanometer process. TSMC said last month that it is on schedule to manufacture 2-nm chips in volume, for the company's customers during the second half of this year, but only in Taiwan for now.

AMD has been losing out in the AI chip market to Nvidia's graphics-processing units. However, its CPUs have been taking market share from Intel in data centers and personal computers.

Intel intends to start manufacturing its own next-generation processors on its 18A process in the second half of this year. Intel has said the 18A process will give it a technological lead against TSMC.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 15, 2025 08:25 ET (12:25 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.