AMD CEO Lisa Su says chip shortages ‘not a disaster’ but semiconductor firm’s path gets tougher

Su said recent chip shortages are just another example of the periodic imbalances between supply and demand in the semiconductor market
One silver lining for the chip industry is that the shortages have made customers more open to long-term commitments

Semiconductors

Bloomberg

Published: 3:15pm, 20 May, 2021

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Advanced Micro Devices (AMD) chief executive Lisa Su, who took the helm in 2014, has returned the chip maker to profitability, taken market share from Intel Corp and banished concerns about the company running out of cash.

More than six years into her tenure, AMD has seen its market value surge to more than US$90 billion from about US$2 billion when Su was named chief executive. She is the first woman to head a major semiconductor company.

On Wednesday, the company unveiled a US$4 billion stock-repurchase plan, its first buy-back since 2001, highlighting its new financial heft and stability.

Still, Su is not ready to take a victory lap. “Without a doubt it does not get easier,” Su said in an interview with Bloomberg. “We’re in a very competitive market. We have big ambitions about what we want to be able to do.”

Semiconductor company Advanced Micro Devices, headquartered in Santa Clara, California, unveiled a US$4 billion stock buy-back plan on May 19, 2021. Photo: Shutterstock

Under Su, AMD has gone from an also-ran chip maker offering cheaper alternatives to Intel products to a respected provider of computer processors that win orders based on superior performance.

Restoring AMD’s reputation and performance comes at a critical juncture for the semiconductor industry. The Covid-19 pandemic accelerated demand for remote computing via the internet and for devices needed to support study and work at home.

All that came during a period when Intel, the world’s largest chip maker, had struggled to improve its manufacturing technology, one of the foundations of its decades-long dominance of the computer industry.

Su said recent chip shortages, which have hamstrung multiple industries as the world economy comes back to life, are not a disaster – these are just another example of the periodic imbalances between supply and demand in the semiconductor market.

Taiwan aims to bolster chip production as Covid-19 spreads and lead times jump

One silver lining for the chip industry is that it has made customers more open to longer-term commitments.

“Normally everybody sort of plans their worlds separately, and now we’re really having to plan our worlds together,” Su said.

She predicts supply of AMD chips, which are built by Taiwan Semiconductor Manufacturing Co, will improve throughout 2021.

On her main accomplishment, Su said it has been earning AMD a new reputation for delivering on its promises as well as winning customers’ trust that the company can consistently supply improving products.