AMD 1997 Annual Report Download - page 8

SPLDs are typically based on common architectures that are familiar to most
system designers and are supported by standard, widely available software
tools. SPLDs are usually the most effective solution to support simple logic
functions. However, as the prices of high-density PLDs become more
competitive, customers are increasingly migrating to CPLDs or FPGAs to address
complex logic requirements and space constraints and to achieve power savings.
Typically, the smallest CPLD is equivalent in logic function to, and occupies
nearly the same amount of space as, approximately four SPLDs.
CPLDs and FPGAs are typically based on proprietary architectures and require
support from sophisticated software tools. In situations requiring complex
logic functions, high-density PLDs can provide important advantages over a
large cluster of low-density devices, including improved system speed, lower
power requirements and lower cost. The Company believes that a substantial
portion of high-density PLD customers utilize both CPLD and FPGA architectures
within a single system design, partitioning logic functions across multiple
devices to optimize overall system performance and cost.
PLDs are used in complex electronic systems, including telecommunications
and networking systems, high-performance computers and peripherals, video
graphics and imaging systems, and instrumentation and test systems. PLDs are
also used in a variety of consumer electronic devices, and in medical
instrumentation and industrial control applications.
The Microprocessor Market
In 1981, IBM introduced its first PC containing a microprocessor based upon
the x86 instruction set developed by Intel Corporation (Intel) and utilizing
the Microsoft(R) Corporation (Microsoft) MS-DOS(TM) operating system. The so-
called IBM-compatible computer has evolved over the years with each successive
generation of x86 microprocessors. Each new generation of x86 microprocessors
has delivered increased performance and functionality while maintaining
software, hardware and peripheral compatibility for industry standard
operating systems such as Microsoft MS-DOS and Microsoft Windows(R). The
microprocessor market is currently dominated by Intel.
The microprocessor, an IC generally consisting of millions of transistors,
serves as the central processing unit, or "brain," of a computer system. The
microprocessor is typically the most critical component to the performance and
efficiency of a PC. The microprocessor is responsible for controlling data
flowing through the electronic system, manipulating such data as specified by
the hardware or software which controls the system. Developments in circuit
design and very large scale integration process technology have resulted in
dramatic advances in microprocessor performance over the past ten years.
Today, the greatest demand for microprocessors is from personal computer
manufacturers and, in particular, for microprocessors which are Microsoft
Windows compatible and are based on the x86 instruction set. Improvements in
the performance characteristics of microprocessors, coupled with decreases in
production costs resulting from advances in process technology, have broadened
the market for PCs and increased the demand for microprocessors.
Embedded processors are also an important segment of the microprocessor
market. Embedded processors are general purpose devices used to carry out a
single application with limited user interface and programmability. A system
designed around an embedded processor cannot usually be programmed by an end
user because the system is preprogrammed to execute a specific task. Key
markets for embedded processors include telecommunications, networking, office
automation, storage, automotive applications and industrial control.
The microprocessor business is characterized by short product life cycles,
intense price competition and rapid advances in product design and process
technology resulting in rapidly occurring product obsolescence.
The establishment of hardware and software standards for PCs and the
emergence of numerous PC suppliers have caused the PC industry to be extremely
competitive, with short product life cycles, limited product differentiation
and substantial price competition. To compete more effectively, almost all PC
suppliers have evolved from fully integrated manufacturers with proprietary
system designs to vendors focused on building
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Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998