Amd Analysis Essay Research Paper Advanced Micro

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Amd Analysis Essay, Research Paper Advanced Micro Devices How It Stands In The Market Advanced Micro Devices (AMD) is a global supplier of integrated circuits for the personal and networked computer, communications markets, and an employer of over 13,000 employees. AMD produces variety of products, such as, microprocessor chips, flash memories, programmable logic devices, embedded chips, nonvolatile memories, and products for communications and networking applications. AMD is most noted for it s development of super-fast and economically priced microprocessor chips, for which it ranks #2 in the world behind Intel. At AMD s current rate of financial and market growth, along with its ability to develop the world s fastest and most reliable chips, the company is well on its way

to overthrow the industry giant, Intel. In this analysis of AMD, we are going take a look at its history from a small company to becoming the industry leader that it is today, its competition with archrival Intel, why the stock took a beating after better than expected earnings, and its outlook for the corporations future. History of Advanced Micro Devices The Dawning of An Industry Giant On 1 May 1969, Jerry Sanders and seven others had been toiling for months to pull together their scrappy start-up. The year before, Jerry had left his job as director of worldwide marketing at Fairchild Semiconductor, and he now found himself heading a team committed to a well-defined mission of building the best semiconductor company to the manufacturers of electronic equipment in the

computation, communication and instrumentation markets. The company was small and financially insufficient that Mr. Sanders and the rest of the team held the company headquarters the living room of John Carey, one of the co-founders, before it would soon move into two rooms in the back of a rug cutting company in Santa Clara. By September, AMD had raised the money it needed to begin manufacturing products and moved into its first permanent home in Sunnyvale, California. During the company’s first years, the vast majority of its products were alternate-source devices, products obtained from other companies that were then redesigned for greater speed and efficiency. To give the products even more of a selling edge, the company instituted a guarantee of quality unprecedented in

the industry. All products would be made and tested to stringent MIL-STD-883 , regardless of who the customer was and at no extra cost. After five years of hard work, there were nearly 1,500 employees making over 200 different products generating around $26.5 million in annual sales. AMD would soon become an industry leader in investment into research and development. By the end of fiscal year 1981, the company had more than doubled its sales over 1979. Plants and facilities expanded all the way across to Texas. New production facilities were built in San Antonio, and more was added in Austin as well. AMD had quickly become a major contender in the world semiconductor marketplace. AMD celebrated its 15th year with one of the best sales years in company history. In the months

following AMD’s anniversary, employees received record-setting profit sharing checks and celebrated Christmas with musical group Chicago in San Francisco and Joe King Carrasco and the Crowns in Texas. By 1986, however, the tides of change had swept the industry. Japanese semiconductor makers came to dominate the memory markets, up until now a foundation for AMD, and a fierce downturn had taken hold of the computer market, limiting demand for chips in general. AMD, along with the rest of the semiconductor industry, began looking for new ways to compete in an increasingly difficult environment. In 1989, Mr. Sanders was discussing about changing the entire company to compete in new markets. AMD would embark on building its sub micron capability with the Sub micron Development