Advanced Micro Devices (NASDAQ:AMD) is set to produce high-performance computing chips at TSMC's (NYSE:TSM) new production site in Arizona, marking the first time AMD (NASDAQ:AMD) will produce on the American soil.

The chips AMD (NASDAQ:AMD) plans to manufacture are the next-generation AMD EPYC processor, codenamed “Venice,” the HPC product to be taped out and brought up on the TSMC (NYSE:TSM) advanced 2nm (N2) process technology. 'Venice' is on track to launch next year, the company said.

“TSMC has been a key partner for many years and our deep collaboration with their R&D and manufacturing teams has enabled AMD to consistently deliver leadership products that push the limits of high-performance computing,” said Dr. Lisa Su, chair and CEO, AMD. “Being a lead HPC customer for TSMC’s N2 process and for TSMC Arizona Fab 21 are great examples of how we are working closely together to drive innovation and deliver the advanced technologies that will power the future of computing.”

Up until now, the AMD (NASDAQ:AMD) products were made at the Taiwanese facilities of contract chip manufacturer TSMC (NYSE:TSM).

"Our new fifth-generation EPYC is doing very well, so we're ready to start production," AMD Chief Executive Lisa Su told reporters in Taipei, referring to its central processing unit (CPU) for data centers.

The move coincides with tech companies globally trying to diversify their supply chains amid escalating trade war fears and Trump's tariffs sending jolts to global economies.

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