AMD's U.S.-Made Chips Will Cost More -- and Lisa Su Says That's Fine

Lisa Su isnt losing sleep over more expensive chips.

The AMD (AMD, Financials) chief says her companys first chips coming out of TSMCs new Arizona plant will cost more than those made in Taiwananywhere from 5% to 20% higher, to be exact. But in her view, thats a price worth paying.

We have to consider resiliency, Su said during a Bloomberg interview after an AI forum in Washington. We learned that in the pandemic.

AMD expects the first U.S.-produced chips by the end of the year, marking a significant milestone in the companys effort to diversify its manufacturing footprint. And Su emphasized that quality wont be sacrificedchip yields at the Arizona site are already on par with Taiwan.

Higher labor and construction costs in the U.S. have long been a sticking point for chipmakers, but the industry is starting to see the value in building closer to homeespecially with global tensions and supply chain fragility still fresh memories.

For Su, its a strategic move. AMD wont stop working with TSMCs factories in Asia, but having a Plan B in the U.S. helps buffer against disruption. Its not about chasing the lowest price anymoreits about keeping the lights on.

And for investors, thats a trade-off many are happy to live with.