AI growth is increasingly becoming a manufacturing, packaging and deployment challenge — not just a computing one.
Updated
May 26, 2026 5:28 PM
Taipei 101 and Taipei Nan Shan Plaza, viewed from Elephant Mountain. PHOTO: UNSPLASH
As AI companies continue scaling larger models and data centers, the pressure is no longer falling only on chip design. Manufacturing capacity, advanced packaging and infrastructure deployment are becoming equally important parts of the AI race. AMD’s latest investment announcement reflects how quickly that shift is accelerating.
The US chipmaker announced plans to invest more than US$10 billion across Taiwan’s semiconductor and manufacturing ecosystem to support next-generation AI infrastructure. The investment focuses on expanding partnerships and increasing advanced packaging capacity needed for future AI systems.
The announcement highlights a growing reality across the AI industry. Building powerful AI chips is no longer enough on its own. Companies now also need the manufacturing networks, packaging technologies and supply chain coordination required to deploy AI infrastructure at global scale.
AMD’s investments center heavily around advanced chip packaging, an area becoming increasingly critical as AI systems demand higher performance and greater power efficiency. Traditional chip architectures are struggling to keep pace with the size and complexity of modern AI workloads. Advanced packaging helps connect processors, memory and computing systems more efficiently while managing power and cooling limitations inside large-scale AI environments.
The company said it is working with Taiwan-based partners including ASE, SPIL and PTI to develop next-generation packaging technologies for its upcoming 6th Gen AMD EPYC processors, codenamed “Venice.” AMD also said it had qualified what it described as the industry’s first 2.5D panel-based EFB interconnect technology alongside PTI.
At the center of the broader strategy is AMD Helios, the company’s rack-scale AI infrastructure platform scheduled for deployment beginning in the second half of 2026. The platform combines AMD Instinct MI450X GPUs, 6th Gen EPYC CPUs, networking systems and AMD’s ROCm software stack into integrated AI infrastructure systems designed for hyperscale deployment.
Rather than selling individual processors alone, companies are increasingly building complete AI infrastructure platforms that combine hardware, software, cooling systems and power management into unified deployments. That transition is reshaping how AI infrastructure is designed, manufactured and delivered.
Taiwan is also becoming more deeply embedded in that process. AMD’s investment spans not only semiconductor packaging companies but also manufacturing and system integration partners including Sanmina, Wiwynn, Wistron and Inventec. The partnerships reflect Taiwan’s growing role as one of the operational centers of the global AI infrastructure economy.
Dr. Lisa Su, Chair and CEO of AMD, said: “As AI adoption accelerates, our global customers are rapidly scaling AI infrastructure to meet growing compute demand. By combining AMD leadership in high-performance computing with the Taiwan ecosystem and our strategic global partners, we are enabling integrated, rack-scale AI infrastructure that helps customers accelerate deployment of next-generation AI systems”.
Power efficiency is becoming another major challenge shaping AI infrastructure decisions. As AI workloads consume more electricity and generate more heat, infrastructure providers are increasingly being forced to rethink cooling systems, interconnect technologies and deployment economics.
AMD’s announcement signals how the AI competition is evolving beyond model development and raw computing power. The next stage may depend just as heavily on who can manufacture, package and deploy AI infrastructure fast enough to support global demand.
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A new AI model replaces months of simulation with near-instant predictions, changing how spacecraft operations are prepared
Updated
April 24, 2026 10:53 AM
Northrop Grumman Stargaze serves as the mother ship for the Pegasus, an air-launched orbital rocket. PHOTO: UNSPLASH
Flexcompute, a startup that builds software to simulate real-world physics, is working with Northrop Grumman to change how space missions are prepared. Together, they have developed an AI-based system that can predict how spacecraft respond during critical manoeuvres such as docking—when one spacecraft moves in and connects with another in orbit. These steps have traditionally taken months of preparation.
At the centre of this work is a long-standing problem in space operations. When a spacecraft fires its thrusters, the exhaust plume interacts with nearby surfaces. These interactions can affect movement, temperature and stability. Because these effects are difficult to test in real conditions, engineers have relied on large volumes of computer simulations to estimate outcomes before a mission. That process is slow and resource-intensive.
The new system replaces much of that workflow with a trained AI model. Instead of running millions of simulations, the model learns patterns from physics-based data and can make predictions in seconds. It also provides a measure of uncertainty, which helps engineers understand how reliable those predictions are when making decisions.
"At Northrop Grumman, we're pioneering physics AI to accelerate design and solve complex simulation and modelling problems like plume impingement—critical for station keeping, rendezvous and space robotics. Simply put: we're pushing the boundaries of advanced space operations", said Fahad Khan, Director of AI Foundations at Northrop Grumman. "Partnering with Flexcompute and NVIDIA, we're accelerating innovation and mission timelines to deliver superior space capabilities for customers at the speed they need".
The system is built using technology from NVIDIA, which provides the computing framework behind the model. Flexcompute has adapted it to handle the specific challenges of spaceflight, including how gases expand and interact in a vacuum. The result is a tool that can simulate complex scenarios much faster while maintaining the level of accuracy needed for mission planning.
By shortening preparation time, the model changes how engineers approach spacecraft design and operations. Faster predictions mean teams can test more scenarios and adjust plans more quickly. It also helps improve fuel use and extend the lifespan of spacecraft.
"Northrop Grumman's confidence reflects what sets Flexcompute apart", said Vera Yang, President and Co-Founder of Flexcompute. "We are able to take the most accurate and scalable physics foundations and evolve them into highly trained, customized Physics AI solutions that engineers can rely on. This work shows how we are transforming the role of simulation, not just speeding it up, but expanding what engineers can confidently solve and how quickly they can act".
The collaboration points to a broader shift in how engineering problems are being handled. Instead of relying only on detailed simulations that take time to run, companies are beginning to use AI systems that can approximate those results quickly while still reflecting the underlying physics.
"The industry's most ambitious space missions now demand a level of speed and precision that traditional engineering cycles can no longer sustain", said Tim Costa, vice president and general manager of computational engineering at NVIDIA. "By integrating NVIDIA PhysicsNeMo, Northrop Grumman and Flexcompute are transforming complex simulations like plume impingement from days of compute into seconds of insight, drastically accelerating the path from mission concept to orbit".
What emerges from this work is a shift in how missions are prepared. When prediction cycles move from months to seconds, testing and decision-making can happen faster. For space operations, where timing and precision are closely linked, that change could reshape how systems are built and run.