Lisa Su is now CEO of AMD

[krumme]

It might seems that AMD lack of compettitive products - eg. the big cpu line - is what is hindering success. Buth imo the partnering agree with GF and wsa would keep AMD profit low even if the products was far better.

Mubadala that invest in GF is about the most incompetent investor for this area. The investment in GF is also made because of political reasons. Amd is tight to that partner, and that is about the most limiting growth factor for AMD. Such a partnering can only be a downside.

My take on it. GF and AMD needs to be completely seperated as business units. If they dont, its not possible to track what is good business and what is not good business.

I have written about this lack of transperancy the last 3-4 years, and Pablo seemed to be the only one understanding the implications. The problems still stand today. Even with a new CEO the ownership situation around AMD is a mess and needs to be solved.

That should be Lisa and the boards first task. AMD is so weak as a company the entire idea that it can keep GF floating in any way is idiotic. That message should be able to get into Mubadala - at least with the right "arguments" (talk not suitable for amd shareholders).

 

[NostaSeronx]

GlobalFoundries is the means of success for AMD. If AMD can't make GlobalFoundries profitable as a high-tier partner. Then, AMD is stuck with TSMC. Who would rather launch a node with nice stats and no yields.

A good relationship between AMD and GlobalFoundries is required. For AMD, to be a competitive influence in semiconductors.

GlobalFoundries is no longer exploring exclusive nodes. Instead, is now partnering up with Samsung and STMicroelectronics. The issue of running nodes that were only exclusive to GlobalFoundries is gone. The volume issue AMD has had since forever is gone.

AMD has two choices;
Cheap-for-them, cheap-for-us
or
Expensive-for-them, cheap-for-us

GlobalFoundries is the only foundry that would be willing to give AMD leeway in nodes if it meant it ended in profit.

STMicroelectronics beat GlobalFoundries to Double Gate ETSOI.
Samsung beat GlobalFoundries to Tri-gate FinFETs.

Both have partnered up with each other and shared their nodes with GlobalFoundries. I repeat, the issue GlobalFoundries having exclusive nodes to only itself is over.

 

[AtenRa]

I dont know what happen with RR but AMDs problem from my perspective and through my eyes in the retail channel, for the last couple of years is the lack of AMD products in the channel especially in Mobile and not their performance competitiveness.

Their APUs are perfect for the Mobile market especially Kaveri but after 3 quarters 35W TDP Mobile Kaveri is MIA. I know Greek market volumes are small especially now with the regression but last year there was not a single AMD Laptop featuring Ritchland APUs to be found locally. 99% of the mobile market is dominated by Intel products. And im the first one to promote the high end Intel Laptops but at lower pricing segments AMDs APUs are very competitive but nowhere to be found.

Not only that, OEMs are selling AMD Laptops featuring APUs with added dGPUs elevating the price of the Laptop to higher more competitive Intel offerings rendering the AMD Laptop irrelevant for the majority of people.
Why add a dGPU when you already have a very capable iGPU ?? There are hundreds of Intel Pentium cheap Laptops with iGPU only, where the f....ck are the AMD ones ???

I dont know what they want to do with their company, but they missed the opportunity of leveraging their biggest advantage they had the last 3 years and that is the APU for Mobile.
From my perspective, the problem is not in the products they have, the problem is the incompetence to promote and sell their products to OEMs and in the channel. You cannot make money from thin air, but you can make some money from even the worst product available if you have it in your self.
I could sell tons of cheap Ritchland Laptops if i was able to have them even today. But Kaveri was released early in 2014 and we already starting to hear about Carrizo for 2015. But there are zero 35W TDP Kaveri Laptops (iGPU only please dont even bother add a dGPU) and i can foresee the same story will continue through 2015 as well.

Hell, if you cannot sell your products to OEMs, then do what NVIDIA is doing. Produce your own Laptops and sell them to Retail channel yourself.
Or stop spending money for those APUs if you cannot sell them, concentrate on ARM or whatever else you believe will be more profitable.

Lets hope Lisa Su will change all that.

 

[krumme]

GlobalFoundries is the means of success for AMD. If AMD can't make GlobalFoundries profitable as a high-tier partner. Then, AMD is stuck with TSMC. Who would rather launch a node with nice stats and no yields.

A good relationship between AMD and GlobalFoundries is required. For AMD, to be a competitive influence in semiconductors.

GlobalFoundries is no longer exploring exclusive nodes. Instead, is now partnering up with Samsung and STMicroelectronics. The issue of running nodes that were only exclusive to GlobalFoundries is gone. The volume issue AMD has had since forever is gone.

AMD has two choices;
Cheap-for-them, cheap-for-us
or
Expensive-for-them, cheap-for-us

GlobalFoundries is the only foundry that would be willing to give AMD leeway in nodes if it meant it ended in profit.

STMicroelectronics beat GlobalFoundries to Double Gate ETSOI.
Samsung beat GlobalFoundries to Tri-gate FinFETs.

Both have partnered up with each other and shared their nodes with GlobalFoundries. I repeat, the issue GlobalFoundries having exclusive nodes to only itself is over.

For some reason your predictions in hindsight always manage to be wrong and even far out.

The wafer agree is probably flexible in the way the strong part in reality dictates what is going to happen. The strong part is the owner, with the original rights, and the one with the money. In this case Mubadala. If they as you think GF can be any success, tieing AMD to GF is great. (somehow the transperancy issue skipped understanding this time too...)

But we talk Mubadala that originally thought they should have a fab in the desert in a cultural and technological dump, where the wages are the highest in the world, and where there is no qualified labor. Its about the most stupid idea ever.

Now they run GF (edit - sort of killed what was left really). And as you say GF is nothing more than a production facility. But what should the problem then be competing on even terms? - whats so difficult?

The reality is Mubadala is still stuck in the same dream as you are. That GF will be a compettitive fab. But its a pipe dream - and have been for years.

The leaway in nodes is bs. What exactly are we talking about. Its not like design and production is integrated any more for AMD. Those days are gone. Its just talk.

 

[NTMBK]

I sincerely doubt that RR was unceremoniously fired.

He has clearly been grooming Dr Su to be the next CEO for quite some time. He brought her in from Freescale and installed her as SVP. He recreated the COO post just so that he could make her his second in command, lining her up so that she could easily take over CEO without causing a major reshuffle in the leadership team. She was obviously RR's choice, and she is the "continuity" candidate. If the BoD genuinely had no faith in RR then why would they install his anointed successor? Surely they would look outside of his inner circle?

They are following through with their long term plan. Bring in the corporate turnaround artist for several years of difficult business choices and transistions, give him time to find and groom a technical minded CEO to lead the company long term, and then wave him off with a handsome exit package.

 

[inf64]

I sincerely doubt that RR was unceremoniously fired.

He has clearly been grooming Dr Su to be the next CEO for quite some time. He brought her in from Freescale and installed her as SVP. He recreated the COO post just so that he could make her his second in command, lining her up so that she could easily take over CEO without causing a major reshuffle in the leadership team. She was obviously RR's choice, and she is the "continuity" candidate. If the BoD genuinely had no faith in RR then why would they install his anointed successor? Surely they would look outside of his inner circle?

They are following through with their long term plan. Bring in the corporate turnaround artist for several years of difficult business choices and transistions, give him time to find and groom a technical minded CEO to lead the company long term, and then wave him off with a handsome exit package.

I think you nailed it, agreed.

 

[krumme]

Can we get that Technical minded CEO off the table? - look at history. What did Meyers do? - exactly where he was suposed to be best - BD - he failed. Technical competence garanties nothing. On the other hand Intel Otellini - an economist - managed growth even during hard times for Intel.

Ofcourse Lisa technical background is an advantage. But she is chosen because she can talk business and economics. And she does that far better than eg. RR, witch just shows your educational background is playing second fiddle to raw talent and intelligence.

 

[krumme]

I think you nailed it, agreed.

Perhaps its a little bit more complicated - or middle way. RR clearly brought Lisa in and brought her into position. But these guys are fighters in a way we dont understand, and often need a little "help" to step down even if its kind of planned

 

[DarkKnightDude]

Her resume screams hire to me.

 

[Idontcare]

I sincerely doubt that RR was unceremoniously fired.

He has clearly been grooming Dr Su to be the next CEO for quite some time. He brought her in from Freescale and installed her as SVP. He recreated the COO post just so that he could make her his second in command, lining her up so that she could easily take over CEO without causing a major reshuffle in the leadership team. She was obviously RR's choice, and she is the "continuity" candidate. If the BoD genuinely had no faith in RR then why would they install his anointed successor? Surely they would look outside of his inner circle?

They are following through with their long term plan. Bring in the corporate turnaround artist for several years of difficult business choices and transistions, give him time to find and groom a technical minded CEO to lead the company long term, and then wave him off with a handsome exit package.

That would have been the story had this happened in say 2-3 business quarters from now, but not this early and not so suddenly rushed with the immediacy of her appointment and the timing with respect to earnings announcement.

The reality of the timing here throws all the nice tied-with-ribbons theories out the window.

But I remember when Dirk was fired, and the disbelievers at the time refused to accept the probability that it was a foreboding signal regarding Bulldozer's (not yet released at the time) performance. And then bulldozer was released and everyone went "oh, oh my, so that explains the timing of it all..."

 

[Idontcare]

As Pablo and i have written years ago, she is also the brains behind what happened at AMD. Dont think the transistion is RR work - because its not his strategy - its hers. And as we said then, she would be a fine CEO. Now she have to prove that. Its only because she is not a white man and pure chance, it took so long for her to get in such a CEO position.

I don't understand why you try so hard to make this about gender or ethnicity, she is quite young in the scheme of CEO's (44yo IIRC) for multi-billion dollar companies.

But there is more to it than that. If you really want organizations to work for you, as CEO, then they have to believe you know the various aspects of the business. The so-called "rounding out" process is real and exists for very good reasons. Lisa will be better off as a CEO now, having had the opportunity to gain working experience as COO, than otherwise.

I see her as a great candidate, no question, but she needed time to gain the skills that are necessary to become a leader across the board as is needed for the CEO. At the young age of 44, I hope she has been given those opportunities. Otherwise she has been setup to fail which is no good for her career or that of the company.

And Dirk was given the same opportunities. Yes he was a technical guy, but Hector played it by the pick in cultivating and exposing him to all the necessary aspects of running a company.

That didn't turn out so well. But the formula isn't meant to assure success, merely to enhance the probability of it. So no wonder they followed the same playbook with Lisa.

 

[mrmt]

He has clearly been grooming Dr Su to be the next CEO for quite some time. He brought her in from Freescale and installed her as SVP. He recreated the COO post just so that he could make her his second in command

She spent just four months on the COO position, and the timing they could get in this planned transition is one week before the quarterly results conference? This would the the Bulldozer of all the CEO transitions.

 

[USER8000]

Its quite funny that one of the most respected people in the computer review industry,says that he knew 9 months ago that Lisa Su would be promoted to CEO from his own sources. It also means probably it was not such a hidden secret I suspect,but OFC I doubt random people on the internet would even know either way unless they were in said industry.

Yet,as usual being the internet people ignore that and go on with their conspiracy theories and axes to grind!

 

[mrmt]

Its quite funny that one of the most respected people in the computer review industry,says that he knew 9 months ago that Lisa Su would be promoted to CEO from his own sources. It also means probably a lot of people in the industry already knew,but OFC I doubt random people on the internet would unless they were in said industry.

Well, I wouldn't bother with any of the tech websites regarding financial information. The financial press, the one that actually makes money with this and have the guys with skills to read this kind of event, is pointing out exactly the rushed nature of the announcement and that the succession doesn't seem to be planned at all.

The interesting thing is that he didn't think his source was strong enough to deserve a story, but now his source is worth mentioning. I don't think he needs to pat his own back like that.

 

[NTMBK]

The interesting thing is that he didn't think his source was strong enough to deserve a story, but now his source is worth mentioning. I don't think he needs to pat his own back like that.

Or he didn't want to burn his source. I'm sure that Ryan knows an awful lot of things that he doesn't tell us.

 

[mrmt]

Or he didn't want to burn his source. I'm sure that Ryan knows an awful lot of things that he doesn't tell us.

Not Ryan, Scott:

http://techreport.com/blog/27183/amd-ceo-transition-is-a-natural-next-step

In this case, my natural skepticism is dampened by a nugget I picked up at CES back in January. It wasn't anything I could report, but a well-placed industry source suggested to me that Dr. Su would very likely replace Read as AMD's CEO "within the next six months." Of course, since this is AMD, the schedule was optimistic, but that prediction proved accurate—and it lends credibility to the notion that this move was in the works for a while.

It wouldn't have burned his source to mention this after some time.

 

[norseamd]

WTF? Read was doing a great job fixing the company's problems.

My opinion also. I was actually disappointed by this news.

 

[krumme]

I don't understand why you try so hard to make this about gender or ethnicity, she is quite young in the scheme of CEO's (44yo IIRC) for multi-billion dollar companies.

But there is more to it than that. If you really want organizations to work for you, as CEO, then they have to believe you know the various aspects of the business. The so-called "rounding out" process is real and exists for very good reasons. Lisa will be better off as a CEO now, having had the opportunity to gain working experience as COO, than otherwise.

I see her as a great candidate, no question, but she needed time to gain the skills that are necessary to become a leader across the board as is needed for the CEO. At the young age of 44, I hope she has been given those opportunities. Otherwise she has been setup to fail which is no good for her career or that of the company.

And Dirk was given the same opportunities. Yes he was a technical guy, but Hector played it by the pick in cultivating and exposing him to all the necessary aspects of running a company.

That didn't turn out so well. But the formula isn't meant to assure success, merely to enhance the probability of it. So no wonder they followed the same playbook with Lisa.

The day Lisa appeared before an audience in my opinion it was obvious, she was more qualified for the matter than RR. On technical and economic matter. She sounded like she had years of experience in the company and business (like she also have - it was just not in AMD).

Competences she have aquired 13 years ago in management positions with responsibility for R&D - with knowledge about eg. power saving that is vital today and have been the last years. She might be young, but her performance at least on stage + management experience at least on paper, is a far better fit than RR was and ever will be.

Amd might be a multi b company, but its not exactly the perfect catalyzer for your carrer.

RR was the only one for the job back then - and i actually think he have done a good job in comparison to the mess AMD was - and still is imo. I think AMD is lucky to have Lisa today, because i dont think people is standing in line for the job.

If she can not get the business running, nobody can, and there is absolutely no way to continue to waste money on it, and its better to sell the leftovers.

 

[NTMBK]

Not Ryan, Scott:

Sorry, I didn't phrase that awfully well I was implying that all the big sites probably know a lot of stuff that they're not telling us.

 

[mrmt]

Sorry, I didn't phrase that awfully well I was implying that all the big sites probably know a lot of stuff that they're not telling us.

As I said, I don't see any reason to not write about it, and even less reasons to not write about it and pat his own back after the deal was done, especially when every financial website out there is going the opposite way. Scott definitely isn't the top source for financial information I can think of.

 

[NTMBK]

As I said, I don't see any reason to not write about it, and even less reasons to not write about it and pat his own back after the deal was done, especially when every financial website out there is going the opposite way. Scott definitely isn't the top source for financial information I can think of.

If only a very small circle of people knew that information, then him posting it on a public website could lead to serious ramifications for those people. Now that it is public knowledge he can openly talk about it.

And this isn't really "financial information" per se, it's a change of staff at the higher level a tech company which he covers day in day out and has a lot of contact with.

 

[sm625]

I hope this means they are going to stop shoveling out "E1-1200" type garbage that scores under 700 on passmark and makes you make damn sure you never buy another AMD system ever again. So many people bought those systems, because apparently it is better to spend $300 on something new at Walmart than it is to spend $200 on something used that is literally 3 times as fast. Intel E8600 is 3x as fast, and there are hundreds of thousands of off lease E8x00 systems just sitting around rotting, depreciating more and more every day. Over the next year, there is going to be a major influx of clarkdale 32nm i5 systems flooding the used market, and AMD has no answer for these either. Nothing they make is as fast as an i5-661.

 

[mrmt]

If only a very small circle of people knew that information, then him posting it on a public website could lead to serious ramifications for those people. Now that it is public knowledge he can openly talk about it.

Well, if you want to believe Scott, be my guest. CEO sucessions aren't a subject that is restricted to a few people once the process is underway, and that point is something Scott would know if he were on the loop, and would be able to publish if he really knew.

But I think the crux of the question is that AMD wouldn't have dumped his CEO from his position and from the BoD in the week prior to the quarterly results with immediate effects. That's not how planned succession works. That question wasn't addressed by Scott and others defending this theory.

 

[lefty2]

I was just thinking this happened right after the Deutsch Bank conference where he gave a speach that did not inspire confidence.
In particular, he said "Everyone knows that Bulldozer was not the game changing part when it was introduced three years ago. We have to live with that for four years".
That is something that no CEO should ever say (even if it's true). It's basically admission that Carrizo is going to be crap.

 

[Ajay]

She spent just four months on the COO position, and the timing they could get in this planned transition is one week before the quarterly results conference? This would the the Bulldozer of all the CEO transitions.

Going forward, this is the biggest concern to me - Lisa Su spent _only_ 4 months as COO at a multi-billion dollar company! That's not enough time, IMO, unless she is gifted (which could be the case, I just don't know). Two years would seem suitable for a fast rising executive.

We still need to see what other promotions/hiring/firings will follow and, of course, the next quarterly release should be very telling.