Advanced Micro Devices CEO Lisa Su said that a lot of the chipmaker’s supply chain is in China and Malaysia but that disruptions from COVID-19 have had little impact so far.
AMD has forecast that its revenues will be $1.8 billion, plus or minus $50 million, for the first quarter ending March 31. And Su said the company is not changing this guidance, though revenues may come in on the lower side of that range. She also said AMD is not changing is forecast for the year.
“Obviously, there’s a lot of volatility in the markets with the coronavirus and we want to make some comments about that, as well,” she said. “Our first priority, of course, is for the health and safety of our employees and our partners and our customers. And so that is our focus, and we have taken steps to minimize potential exposure [and travel].”
She said most of AMD’s supply chain is in China, Malaysia, and Taiwan.
“I would say [it’s a] very robust supply chain, so we’ve taken a number of actions to ensure that we have continuity in that supply chain,” she said. “And based on what we see today, we’re actually back to our normal supply capacity.”
As for customers, some operations have been affected, and those companies are trying to get back to normal operations over the coming weeks.
She noted that the demand picture is a “very fluid situation.”
Su said, “In China, we have seen some reduction in consumer demand, particularly in the offline channel networks, and those will continue for some time. We have also seen some other situations where the demand for infrastructure has increased.”
Based on visibility, Su said the impact is expected to be “modest.”
Patrick Moorhead, an analyst at Moor Insights & Strategy, said in an email, “[That] makes sense to me, as AMD’s supply chain is very short. It [fabricates] parts at TSMC, tests [the product], packages it, tests it again, then packs and ships to customers.”
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