In an insightful interview on CNBC’s “Squawk on the Street,” AMD CEO Lisa Su addressed the complex dynamics of U.S.-China relations concerning semiconductor exports. Su focused on opportunities in China, which are sizable. He stressed the need to tread cautiously between export restrictions and the need to spur broader technology adoption.
Su’s remarks come on the heels of AMD’s release of its fiscal first-quarter results. These findings underscore the real-world impact of U.S. export controls. She also disclosed that the company anticipates incurring charges up to $800 million. This cost is primarily attributable to delivering its MI308 products to China and other International Markets. These costs come straight out of the damaging export restrictions that the administration has recently imposed on China, which have sown fears about market access.
The Importance of U.S. Leadership in AI
Su underscored the criticality of U.S. leadership in AI as a key driver for its development and deployment. She defended that one of AMD’s core missions is to accelerate technology adoption at scale. She expressed confidence in AMD’s positioning, claiming the company’s way through these challenges is the right direction.
“There should be a balance between export controls for national security as well as ensuring that we get the widest possible adoption of our technology,” – AMD CEO Lisa Su.
Over the last few years, the semiconductor industry has gone through major shocks. In answer, companies such as AMD have moved to a more agile, iterative, and responsive model. Su noted, “We’ve learned to become very agile through all of the things that have happened to the semiconductor supply chain, and we’re going to continue to watch all of these trends very carefully and make sure that we react appropriately going forward.”
Su’s Commitment to U.S. Job Creation
Su is right—creating an environment where technology can thrive is key to strengthening the U.S. economy and creating quality jobs. She stated, “That’s a good thing for U.S. jobs in the U.S. economy,” highlighting her commitment to ensuring that AMD’s operations contribute positively to job creation domestically.
AMD in particular is going through a rough patch. Su’s comments reflect a broader sentiment across the tech sector, but pointedly address a foundational challenge in aligning national security priorities with the imperative to cultivate innovation and maintain market access. The company’s forward-looking approach is to make sure they’re able to capture opportunities, but do so within the bounds of the regulations that need to be followed.
Author’s Opinion
Lisa Su’s comments on the balance between U.S. export restrictions and fostering technology adoption highlight the challenging reality that tech companies face in the current geopolitical climate. While the need for national security is undeniable, stifling innovation through overly strict export controls could hurt both global market access and the development of key technologies. Su’s approach emphasizes agility and the importance of strategic flexibility, which is crucial for navigating this complex landscape.
Featured image credit: Angel Bena via Pexels
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