Dr. Lisa Su, the chief operating officer (COO) of American chipmaker Advanced Micro Devices, Inc (AMD) has been promoted to become the president and chief executive officer of the company.

She replaces Rory Read, who was appointed to head the company in 2011, after a successful stint as the COO of Lenovo.

It is unclear why this administrative change is being made. Bruce Claffin, chairman of the company's board of directors offered some insight into the reason behind the decision. According to him, The "Leadership succession planning has been a joint effort between Rory and the board and we felt that Lisa's expertise and proven leadership in the global semiconductor industry make this an ideal time for her to lead the company."

Reports indicate that Mr. Read will serve in an advisory role with AMD until the end of the year. The outgoing CEO released a statement saying "I am grateful to have had the opportunity to lead such a talented team and proud of what we have accomplished during such an important chapter in the company's history."

Under the leadership of Mr. Read, AMD has made incredible strides in improving returns and boosting its overall performance.  In the past three years, the company has returned to non-GAAP profitability, while reducing its expenditure by about 30% and diversifying its products.

In the second quarter of this year, the company reported an operating income of $67 million and revenue of $1.44 billion. This represents an increase of about 3% from the previous quarter and a 24% growth year-over-year.

Commenting on the company's returns after the release of its second quarter earnings earlier in the year, Mr. Read said "Our transformation strategy is on track and we expect o deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets."

The company will announce its third quarter earnings next week. Many analysts expect the company's earnings from the past quarter to be slightly better than the previous one.

Dr. Lisa Su, the ex-COO of the company has commented on her promotion. According to the 44-year-old, AMD's "world-class technology assets combined with the incredible talent and passion of the AMD team provide us with a unique opportunity to shape the future of computing. I look forward to expanding on the strong foundation we have built under Rory's leadership as we develop industry-leading technologies and products for a diverse set of markets to drive sustainable and profitable growth."

Prior to being AMD's COO, Dr. Lisa Su had served at several position in various notable companies, including Freescale Semiconductor Holdings I Ltd, International Business Machines Corp and Analog Devices, Inc.