AMD Expands CPU Shipments as Qualcomm and MediaTek Cut Mobile Chip Production

AMD is expanding its CPU production capacity in the first quarter of 2026. The company is increasing shipments of its Turin and Genoa processor families. This strategic move capitalizes on a significant shift in the semiconductor manufacturing landscape. Smartphone manufacturers are reducing their orders for advanced chips at TSMC.

Qualcomm and MediaTek reduce 4nm and 5nm mobile chip output by millions of units

Qualcomm and MediaTek have cut production of 4nm and 5nm mobile chips due to shrinking smartphone demand. These production cuts amount to 20,000 to 30,000 wafers. The reduction represents approximately 15 million to 20 million mobile chips. This creates a surplus of TSMC capacity that AMD can now utilize for its older 5nm CPU production.

Lisa Su confirmed the increased shipping volumes across both high-end Turin and Genoa product lines. She noted that AMD is shipping a substantial number of Genoa processors alongside its newer offerings. Industry observer Jukan validated this trend by noting that AMD has been manufacturing a large volume of older 5nm CPUs. The company is effectively replacing vacated smartphone chip capacity with CPU manufacturing.

The shift in supply chain dynamics comes as component costs rise for mobile devices. DRAM now constitutes 35 percent of the bill of materials for entry-level handsets. NAND memory adds another 19 percent to these costs. AMD benefits from this environment by securing manufacturing slots that were previously reserved for the mobile sector.

AMD has not confirmed specific launch windows for new CPU models beyond the current quarter. The company continues to focus on volume shipments for its existing processor architectures. Market observers note that this strategy allows AMD to maintain production efficiency during a downturn in smartphone hardware demand.