Advanced Micro Devices Inc (NASDAQ:AMD) has marked its new research-and-development (R&D) centers in Tainan and Kaohsiung.

The R&D units are part of a $270.5 million project to drive the development of artificial intelligence (AI) and silicon photonics technologies. Recently, AMD received a subsidy of 3.31 billion New Taiwan dollars, about 38% of the company's investment over three years.

Minister of Economic Affairs J.W. Kuo met AMD representatives led by David Wang, senior vice president of AMD's graphics processing unit technologies and engineering, in Taipei Wednesday, the Taipei Times reports.

Tainan is a central manufacturing hub of Taiwan Semiconductor Manufacturing Co's (NYSE:TSM) 3-nanometer chips for AI devices.

Taiwan Semiconductor is building a new fab to produce next-generation 2-nanometer chips in Kaohsiung.

AI chip giant Nvidia Corp (NASDAQ:NVDA) has set up its first AI R&D center in Taipei's Neihu District and is exploring sites for a second, likely in Kaohsiung.

JPMorgan analyst Harlan Sur expects AMD to grow data center GPU revenue by over $5 billion in fiscal 2024.

AMD stock gained over 49% in the last 12 months, backed by the AI frenzy. It trades at a forward price-to-earnings of 46.3x versus Nvidia's 48.3x.

Price Action: AMD stock traded lower by 0.18% at $157.33 at last check Thursday.