The chief technology officer of Advanced Micro Devices on the lessons learnt from the recent chip shortage, the future of chip-making in India, the evolution of the semiconductor sector, and more
The five-decade-old US-based Advanced Micro Devices (AMD) has been operating in India for over 20 years. At the recent Semicon India conference, the semiconductor company announced a $400 million investment over the next five years to expand its research, development and operations in India. The planned investment includes a new AMD campus in Bengaluru that will serve as the company’s largest design centre in the world. Last February, the company purchased adaptive chip company Xilinx for $49 billion, which is reportedly one of the biggest semiconductor acquisitions in history. In an exclusive conversation with Forbes India, Mark Papermaster, chief technology officer, AMD, who has four decades of experience in the semiconductor industry, talks about India’s approach to chip-making, the investment it takes to build a fab, and more. Edited excerpts:
Q. The recent chip shortage highlighted the problems of overseas dependency, especially amid continued tension between China and Taiwan. What lessons did AMD learn from this?
Well, when you think about what happened during the pandemic, there was really a surge in demand for electronics because of what happened to the population. Everybody had to work remotely. And so, all industries needed to adjust this literally overnight. It created a huge surge, which in turn created a rush on the electronics that were needed. Industries ranging from automobiles to electronics had shortfalls. So, I think when you look at the lessons learnt, it's really about anticipating demand better and making sure you have reserve stockpiles to buffer when there might be a surge in demand. We did a pretty good job of that during the pandemic. We did have supply shortfalls. But AMD was affected less than other companies.
In general, the semiconductor industry goes through cycles of supply and demand. But usually, it does not result in severe shortages, as we've experienced during the pandemic. That was highly unusual. There's a lot to learn, particularly in certain industries like automotive, where they did not have enough reserve banks to build ahead. So, they learnt that lesson, and they'll build ahead. But usually, the industry is experienced in how to accommodate the cycles of supply and demand and have buffer stock.
Q. Which countries have end-to-end chip-making capabilities, and how long will it take for India to reach that level?