On May 20, Lisa Su, Chair and CEO of AMD, attended the 10th Anniversary Celebration & High-quality Development Kick-off Ceremony and Phase II New Plant Launch Event of Tongfu AMD Semiconductor in Suzhou Industrial Park. The occasion marks a new phase of the decade-long partnership between Tongfu Microelectronics and AMD, and serves as a pivotal move to expand advanced packaging capacity amid the booming AI and high-performance computing industry.
Suzhou Tongfu AMD Semiconductor Co., Ltd. was jointly established by AMD and Tongfu Microelectronics in Suzhou Industrial Park in 2016. Tongfu Microelectronics holds an 85% equity stake, while AMD owns the remaining 15%.
Since its founding, Tongfu Microelectronics has grown into AMD’s largest packaging and testing service provider, undertaking over 80% of AMD’s packaging and testing orders covering core product lines including CPUs, GPUs and APUs. The two parties adopt an in-depth joint operation and cooperation model. Aside from joint management of the Suzhou facility, Tongfu Microelectronics also operates AMD’s packaging and testing base in Penang, Malaysia.
This close partnership helps AMD cut capital spending on self-owned packaging and testing assets while securing stable, high-quality production capacity. For Tongfu Microelectronics, catering to AMD’s advanced packaging demands has driven substantial technological upgrading. The Phase I Suzhou plant has achieved mass production of FCBGA packaging, and the company has realized commercial manufacturing of key technologies such as oversized packaging and multi-chip integration.
Driven by AMD’s rising market share in data center CPUs and AI chips, Tongfu AMD Semiconductor posted robust business growth over the past two years. In 2025, the combined revenue of the Suzhou and Penang facilities reached RMB 17.382 billion, with net profit hitting RMB 1.452 billion, both setting record highs.
The newly launched Phase II project represents a major strategic deployment aligned with industrial trends. It aims to further expand high-end advanced packaging and testing capacity and upgrade the intelligent and modern manufacturing system.
AI and agentic AI workloads have generated unprecedented performance requirements for chips, pushing packaging technology toward higher density and integration. Surging demand for high-performance computing and AI chips has rendered advanced packaging capacity a scarce strategic resource on par with cutting-edge manufacturing processes. The launch of Tongfu AMD’s Suzhou Phase II plant precisely responds to such industry trends. Focusing on high-end packaging technologies including FCBGA, the project is designed to meet increasingly stringent packaging and testing requirements for AI chips and high-performance processors.
Lisa Su’s in-person attendance demonstrates AMD’s great emphasis on localized packaging and testing supply chains and stable capacity guarantee. During her meeting with Fan Bo, Secretary of Suzhou Municipal Party Committee, she expressed willingness to deepen industrial, supply chain and innovation cooperation with Suzhou focusing on artificial intelligence and other key sectors.
Shi Lei, Chairman of Tongfu Microelectronics Group, stated that the company will take the Phase II launch as an opportunity to tackle technical challenges, optimize the industrial ecosystem, and jointly write a new chapter in the AI era with Suzhou and AMD.
Tongfu Microelectronics also maintains accelerated business growth and strategic expansion. In 2025, the company achieved operating revenue of RMB 27.921 billion, up 16.92% year on year, and net profit attributable to parent shareholders stood at RMB 1.219 billion, surging 79.86% year on year, both hitting historic records. The company targets annual revenue of RMB 32.3 billion in 2026, with planned capital expenditure reaching RMB 9.1 billion.
Beyond its deep collaboration with AMD, Tongfu Microelectronics has secured breakthroughs across multiple segments. It expanded cooperation with leading clients in power management chip packaging and gained notable market share growth, driving annual revenue growth measured in hundreds of millions. Its automotive electronics business expanded rapidly with client numbers doubled, covering core application scenarios such as smart cockpits and chassis control. In the field of co-packaged optics, related R&D products have passed reliability tests and entered mass production preparation stage.
(Reprinted from https://news.eccn.com/）