AMD is in talks with the Taiwan government to set up two R&D centers — the chipmaker's investment amounts to $270M

Advanced Micro Devices (AMD) is discussing building two new R&D centers in the island nation with the Taiwanese government. Unlike rival Nvidia, which is establishing a new R&D center in Nangang, Taipei, AMD is shifting its development away from north and central Taiwan because of recent power supply constraints.

The Taiwanese government hopes to build an “AI island” in Taiwan, fostering collaboration between industry leaders, government resources, and academia to attract investment worth around NT$15 billion ($469.26 million) in the region. The new AMD R&D centers are said to be part of this initiative.

Earlier this week, an AMD delegation, including senior vice president and Taiwanese native David Wang, met with mayors in Tainan and Kaohsiung and then with Taiwan’s Minister of Economic Affairs, Kuo Chih-hui. A Tainan City Hall official said AMD plans to establish an R&D center in the Shalun Smart Green Energy Science City in Tainan’s Guiren District.

The Tainan Center will partner with National Cheng Kung University. Meanwhile, AMD will team up with two local universities in Kaohsiung City to set up a second R&D center in that city’s Asia New Bay Area.

After meeting with the city mayors, AMD visited the Taiwanese government’s Ministry of Economic Affairs. Speaking with Minister Kuo Chih-hui, AMD confirmed its intent to establish the R&D centers in the southern cities of Taiwan.

Sources familiar with the discussions said that AMD will invest NT$8.64 billion ($270 million) in the project and receive NT$3.31 billion ($103.24 million) in support from the Ministry of Economic Affairs’ Global Innovation Partnership Initiative. That program supports collaborative research and development between global and Taiwanese companies.

The new R&D centers will employ around 400 people, including 200 from outside Taiwan. The company will explore topics such as AI, silicon photonics (SiPh), and heterogeneous integration and promote collaboration with 33 Taiwanese companies.