AMD CEO Lisa Su Discusses Challenges in Silicon Scaling and Innovation

The semiconductor industry is currently grappling with significant challenges related to traditional silicon technology. Lisa Su, the CEO of Advanced Micro Devices Inc. (AMD), emphasized that the future requires a new approach to innovation.

Insights from Recent Conversations: In a recent interview with Tony Yu from ASUS, aired on Bilibili, Su addressed several pressing topics, including the rise of artificial intelligence, the future landscape of semiconductors, and AMD's upcoming project, Strix Halo.

When asked about the increasing popularity of China’s DeepSeek AI model, Su acknowledged its impact globally. "DeepSeek is not just popular in China—it has made waves worldwide," she stated. "It is a remarkably innovative model. The ability to achieve such advanced capabilities with limited computational resources surprised many in the industry."

Su noted that many techniques developed through DeepSeek are being integrated into various AI models. "What I find particularly exciting is that it has sparked a remarkably faster pace of innovation than we have seen before," she added.

Challenges in Silicon Manufacturing: On the hardware front, Su highlighted that progress in traditional silicon manufacturing is becoming increasingly complicated. "Indeed, silicon scaling is getting more difficult," she admitted.

In light of these challenges, AMD is proactively investing in future technologies, including chiplet architecture, 3D stacking, and advanced packaging solutions. Su emphasized the importance of optimizing not just silicon but also the entire package, system, and software.

Regarding gaming PCs, Su discussed their potential beyond gaming. She pointed out that their powerful GPUs can now facilitate various functions, including AI. "Gamers have consistently pushed the boundaries of performance. Your gaming PC can now serve multiple purposes, such as gaming and AI processing, which opens up vast opportunities," she said.

When a question arose about the possibility of bringing Strix Halo to desktop formats, Su enthusiastically confirmed, "Yes, yes, yes, absolutely!"

Why This Matters: Recently, AMD reported a revenue of $7.66 billion for the fourth quarter, exceeding the expected figure of $7.53 billion, with an adjusted EPS of $1.09—slightly above the forecast of $1.08.

Despite a year-over-year revenue growth of 12%, driven largely by a notable 69% surge in Data Center revenue amounting to $3.9 billion, this did not meet analyst expectations of $4.14 billion.

Additionally, Su has expressed clear ambitions regarding AI, as AMD prepares for a significant expansion in its AI GPU segment this year. The company anticipates over 60% growth in AI GPUs in 2025, primarily driven by the rapid scaling of its MI350 accelerator platform.

Looking ahead, the MI400 platform, scheduled for launch in 2026, aims to compete with NVIDIA Corporation’s NVDA Rubin-class computing, targeting to support extensive AI clusters with more than 100,000 GPUs.

Current Stock Performance: Following these updates, AMD’s stock saw a modest increase of 0.12% in after-hours trading, resting at $114.95. It closed at $114.81 during regular trading, reflecting a 0.84% gain, according to the latest data.

Conclusion: As AMD continues to adapt to changes in the semiconductor landscape, Su’s insights reveal both the challenges and exciting opportunities that lie ahead in the tech industry.

AMD, Silicon, Innovation