Adds details and background throughout

May 21 (Reuters) - Advanced Micro Devices AMD.O said on Thursday it would invest more than $10 billion in Taiwan's AI sector to deepen strategic partnerships and boost its capacity to build and assemble advanced AI chips.

Analysts and investors see AMD as a leading challenger to Nvidia's <NVDA.O> dominance in the AI chip market.

Here are some details:

• The U.S. chipmaker said it will collaborate with Taiwanese chip packaging and testing provider ASE 3711.TW and its unit SPIL to develop more power-efficient technology for AI systems and processors.

• The new power-efficient technology will support AMD's Venice CPUs, which are being built on Taiwan Semiconductor Manufacturing Co's (TSMC) 2330.TW advanced 2 nanometer process technology.

• AMD said it was also working with Taiwanese partners including PTI, Sanmina, Wiwynn, Wistron and Inventec 2356.TW.

• "As AI adoption accelerates, our global customers are rapidly scaling AI infrastructure to meet growing compute demand," AMD CEO Lisa Su said.

• "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," she added.

• Taiwan plays a pivotal role in the global AI supply chain for companies including Nvidia and Apple <AAPL.O>. Its position is anchored by the world's largest contract chipmaker, TSMC.

• In a separate statement, AMD also said that it had started ramping up production of the Venice CPUs.