Introduction: A Billion-Dollar Chess Game
Author: Zhang Guangliu
If the competition for AI chips can be likened to a high-stakes poker game, then AMD’s collaboration with OpenAI in October 2025 undoubtedly marks AMD’s “All-in” moment. This partnership, expected to be worth between $70 billion and $100 billion, not only gives AMD the leverage to challenge NVIDIA directly but also acts like a stone thrown into a calm lake, creating ripples throughout the entire AI chip supply chain.
The uniqueness of this collaboration lies in the fact that it is not merely a simple buyer-seller relationship. By granting OpenAI 160 million stock warrants, AMD has effectively made this key customer a “family member” holding about 10% of AMD’s shares. This model of “hardware procurement + equity binding” is akin to the ancient dynasties’ “marriage alliances,” ensuring the stability of the partnership through shared bloodlines.
Chip Manufacturing: TSMC – AMD’s “Exclusive Arsenal”
In the world of AI chip manufacturing, TSMC plays a role similar to that of a top global arms dealer. If AMD is the engineer designing precision weapon blueprints, then TSMC is the factory that turns those blueprints into reality. Currently, about 80% of AMD’s advanced process AI chips (including the MI300/400 series) rely on TSMC’s production lines.
TSMC’s unique advantages are like its “secret techniques”:
-
“Nano-level carving” in process technology: TSMC’s 3nm and 2nm processes are akin to micro-sculpture in the chip world, capable of “carving” hundreds of billions of transistors on a silicon wafer the size of a fingernail.
-
CoWoS packaging as a “3D parking lot”: Through 2.5D/3D packaging technology, TSMC stacks multiple chip modules vertically, significantly increasing integration density, much like constructing a multi-level parking structure.
-
Capacity as a “moat of scale”: With over $30 billion in capital investment each year, TSMC has established a capacity barrier that competitors find hard to surpass.
However, this deep reliance also brings the risk of “putting all eggs in one basket.” Just as global trade history has shown the dangers of dependence on the Strait of Malacca, AMD’s high reliance on TSMC for advanced processes makes its supply chain somewhat fragile.
Packaging and Testing: Tongfu Microelectronics – AMD’s “Invisible Champion”
In the “finishing touches” of chip production, Tongfu Microelectronics plays an indispensable role. This company undertakes about 80% of AMD’s chip packaging and testing tasks, making it AMD’s “invisible champion.”
The partnership between Tongfu Microelectronics and AMD is akin to a decades-long friendship, with both parties establishing deep trust through their joint venture, “Tongfu Supermicro.” Particularly in the packaging of the MI300 series, Tongfu Microelectronics delivered an impressive yield rate of 94%, meaning only 6 out of every 100 chips had defects, which is considered top-tier in the industry.
Imagine Tongfu Microelectronics’ work as the final precision assembly and quality inspection for a high-performance sports car (AI chip). They need to fit multiple chip modules (Chiplets) together like a puzzle, ensuring that billions of connection points align perfectly; any slight error could lead to the entire chip being scrapped.
Supporting Hardware: The “Limbs and Organs” of AI Chips
If the chip is the “brain” of AI computation, then supporting hardware like PCBs, optical modules, and cooling systems are the “limbs and organs” that support the brain’s operation.
Shenghong Technology: The “Nervous System” of Chips
Shenghong Technology provides PCB circuit boards for AMD, which act like the “nervous system” of the chip, responsible for transmitting signals between various components. Shenghong Technology holds about 40% of the market share in AMD’s graphics card PCBs, with its technical advantages reflected in:
-
“Skyscrapers” of circuit boards with over 20 layers: While ordinary PCBs are like single-story houses, Shenghong Technology constructs “circuit skyscrapers” capable of complex signal transmission.
-
99.5% yield rate reflecting “craftsmanship”: Near-perfect yield rates in high-end HDI board production demonstrate its superb craftsmanship.
Inspur: The “Toll Booth” of Data Highways
Within AI data centers, the optical modules provided by Inspur act like “toll booths” on data highways, responsible for converting optical signals. In a major order for 1.6T optical modules for AMD’s MI350 servers, Inspur secured 45% of the share, thanks to:
-
Leading technology as a “pioneering advantage”: Inspur’s technological accumulation in the 800G/1.6T optical module field is akin to experience gained in high-speed railway construction.
-
“Deep binding” with cloud vendors: Close cooperation with North American cloud vendors allows it to anticipate technological evolution directions.
Lingyi Technology: The “Air Conditioning System” of Chips
The heat generated by AI chips during operation is comparable to that of a small electric heater. The cooling solutions provided by Lingyi Technology act like the “air conditioning system” for the chips. Officially becoming AMD’s core cooling supplier in 2025, Lingyi Technology provides cooling modules worth $8-12 for each AI chip, including heat pipes, uniform temperature plates, and other “cooling tools.”
Supply Chain Risks: Hidden Concerns Behind Prosperity
AMD’s supply chain layout resembles a carefully designed aircraft carrier fleet; while powerful, it also has clear weaknesses:
Geopolitical “storm zones”
AMD’s supply chain spans Taiwan (TSMC), mainland China (Tongfu Microelectronics, Shenghong Technology, etc.), and the United States (design centers), making it like a fleet navigating through complex straits, where any political turmoil in these regions could impact the stability of the entire supply chain.
Technological iteration and the “Red Queen Effect”
In the AI chip field, companies must keep running to stay in place. The competitive pressure AMD faces is akin to the Red Queen Effect in “Alice in Wonderland”—requiring double the speed to maintain a lead. NVIDIA’s planned Vera Rubin chip hangs over AMD like the “Sword of Damocles.”
Capacity ramp-up and “bottleneck challenges”
AMD’s “fabless” model is like “designing a menu without opening a restaurant”—able to create exquisite menus, but large-scale production of dishes relies on external chefs. During demand surges, this model may face the risk of not keeping up with capacity.
Future Outlook: The “Golden Decade” of the Industry Chain
AMD’s collaboration with OpenAI has opened the “Pandora’s box” of the AI chip industry chain, unleashing enormous market opportunities. For supply chain companies, the next few years will usher in a “golden period” of development:
The “snowball effect” of orders
As AMD’s AI chip shipments increase, core suppliers’ orders will grow like a snowball. Companies like Tongfu Microelectronics and Shenghong Technology are expected to see their orders from AMD increase by over 50% in the next three years.
The “elevator effect” of technological upgrades
The extreme pursuit of performance in AI chips will drive rapid technological upgrades across the entire industry chain, akin to riding a high-speed elevator—if you don’t get on at the right floor, you’ll miss the entire upward cycle.
The “pyramid phenomenon” of value enhancement
As the complexity of AI chips increases, the positions of key component suppliers in the value chain will shift from the “bottom of the pyramid” to the “top,” with the value share of advanced packaging, high-speed optical modules, and other high-end segments continuing to rise.
Conclusion: The Battle for Ecosystems
The collaboration between AMD and OpenAI marks a new phase in the competition for AI chips—shifting from competition over individual products to competition over ecosystems. It is no longer just a contest of chip performance but a test of the collaborative capabilities of the entire industry chain.
In this feast, suppliers with high technological barriers, deep cooperation with AMD, and significant market shares will be like “surfers” standing at the forefront, leveraging AMD’s development wave to achieve their own leaps. The entire AI chip industry chain will continue to evolve in this healthy competition, ultimately driving the entire AI industry forward.
The future AI chip market is likely to be characterized by a diverse coexistence rather than a single dominant player. By binding with OpenAI as a “lighthouse customer,” AMD has successfully entered the main channel of AI computing power, and the supply chain companies behind it are also riding this big ship toward a new continent full of opportunities.