AMD 1996 Annual Report Download - page 11

devices connected to a PC, such as the monitor and the serial communications
port), printer controllers, industrial machine controls and numerous other
types of electronic equipment to store software which controls the equipment's
operation. The ability of EPROMs to be programmed electrically enables
equipment manufacturers to achieve shorter time to market for new products
than otherwise would be possible if they were required to have specific
integrated circuits manufactured containing their final software programs.
EPROMs are generally preferred to more expensive Flash memory devices in
applications in which it is not necessary to enable the end user to reprogram
the information stored on the integrated circuit. The market for EPROMs is
significantly smaller than the market for Flash memory devices and the Company
believes the market will decline as EPROMs are replaced in various
applications by Flash memory devices.
COMMUNICATIONS PRODUCTS. The Company's communications products are used in
public and private communications infrastructure systems. Specifically, the
products are used in such equipment as central office switches, private branch
exchange (PBX) equipment and voice/data terminals. Among the Company's more
significant products for the communications market are its logic products. In
modern telephone communications systems, voice communications are generally
transmitted between the speaker and the central office switch in analog
format, but are switched and transmitted over longer distances in digital
format. The AMD SLIC line cards connect the user's telephone wire to the
telephone company's digital switching equipment. The AMD SLAC line cards are
coder/decoders which convert analog voice signals to a digital format and
back.
EMBEDDED PROCESSORS. Embedded processors are general purpose devices,
consisting of an instruction control unit and an arithmetic and logic unit,
used to carry out a single application with limited user interface and
programmability. The Company offers a proprietary family of RISC processors,
known as its Am29000 products, which are used as embedded processors in
applications which include high-performance laser printer controllers, high-
resolution graphics controllers, communications controllers and accelerator
cards. The Company has discontinued development of new versions of its Am29000
products, but it continues to produce existing versions. The Company's current
product focus for embedded processors utilizes existing x86 microprocessor
designs which are customized for specific applications. The Company offers a
line of C186 and C188 processors for use as embedded processors in hard disk
drives. In the future, the Company expects to offer embedded processors based
upon third- and fourth-generation x86 microprocessor technology, the E86
family of processors, which are designed for use in hand-held computers and
voice and data communication devices.
NETWORK AND I/O PRODUCTS. The Company's network and I/O products are used
within personal computers to manage the connection of the personal computer to
local area networks and to manage selected input/output functions. The
Company's network products support voice and data communications and
internetworking and are used in hubs, routers and equipment used to connect
workstations and personal computers in local area network infrastructures. In
data communications, the Company is a supplier of network infrastructure ICs
for products including Ethernet hubs and switches.
The Company supplies integrated circuits for business applications utilizing
the 10-megabit-per-second and the 100-megabit-per-second Ethernet local area
network standards. The Company offers a range of integrated circuits that work
with central processing units to manage selected input/output functions such
as audio, small computer system interface disk drive controllers and
communications and networking devices. The Company also supplies a range of
products specially designed to add additional functions, improve performance
and reduce costs in computer peripheral, interface or mass storage
applications. These are generally special-purpose products which are designed
for a specific application. In the case of some large customers, these
products are tailored for specific customers' needs.
OTHER PRODUCTS. The Company also offers a wide variety of older standard
products, some of which are nearing the end of their product life cycles,
which are sold into various IC markets and require limited ongoing research
and development or capital expenditures.
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997