AMD CEO Lisa Su Discusses Challenges in Silicon Scaling and Innovation

The semiconductor industry is encountering significant challenges with traditional silicon technologies. Lisa Su, CEO of Advanced Micro Devices Inc. (AMD), emphasized that the future of innovation in the sector requires a fresh perspective and new approaches.

Industry Challenges: In a recent interview with Tony Yu from ASUS, which aired on Bilibili, Su provided insights on various topics, including the advancing fields of artificial intelligence and semiconductor technology, as well as the innovative Strix Halo project.

Su was asked about China's DeepSeek and its rising status in the global market. She recognized the platform's broad appeal, stating, "DeepSeek is not just popular in China — it's popular globally. It's a very innovative model that has amazed the world with its complexity and efficiency, especially when working with limited computing resources." Furthermore, she noted that many techniques from DeepSeek are being incorporated into other AI frameworks, sparking an accelerated pace of innovation across the industry.

Traditional Silicon Constraints: Transitioning to the hardware aspect, Su recognized that progress in traditional silicon manufacturing is becoming increasingly challenging. "Silicon scaling is indeed getting more difficult," she admitted, highlighting the necessity for the industry to rethink its strategies.

In light of these challenges, AMD is proactively investing in next-generation technologies such as chiplet architecture, 3D stacking, and advanced packaging solutions. Su emphasized, "We must enhance our optimization strategies not only on silicon but also on packaging, systems, and software developments."

Regarding the evolution of gaming PCs, Su pointed out that these powerful machines provide far more than gaming capabilities. "Gamers have always driven performance to new heights," she said, adding that gaming PCs are now versatile enough to handle various tasks including AI applications, which presents a substantial growth opportunity.

When asked about the potential release of Strix Halo on desktop platforms, Su responded affirmatively, saying, "Yes, yes, yes, of course." This enthusiastic acknowledgment reflects AMD's commitment to expanding its product offerings.

Financial Outlook: In AMD's recent financial report, the company recorded $7.66 billion in revenue for the fourth quarter, exceeding expectations of $7.53 billion. The adjusted earnings per share (EPS) also slightly surpassed forecasts at $1.09 compared to the projected $1.08. The overall revenue showed a year-over-year growth of 12%, fueled by a remarkable 69% increase in Data Center revenue, reaching $3.9 billion. However, this figure fell short of analyst estimates of $4.14 billion.

Su has articulated her ambition for AMD's role in the AI sector, with the company preparing for a significant expansion in its AI GPU market this year. AMD expects a growth of over 60% in AI GPUs by 2025, primarily driven by the rapid scaling of its MI350 accelerator platform. Looking forward, the anticipated MI400 platform, set to launch in 2026, aims to directly compete with NVIDIA Corporation's Rubin-class compute, providing the computational power for extensive AI clusters utilizing more than 100,000 GPUs.

Stock Performance: In after-hours trading, AMD's stock price increased by 0.12% to reach $114.95. During the regular trading session, it closed at $114.81, marking an overall gain of 0.84%, as per the latest market data.

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technology, innovation, semiconductors