AMD 2003 Annual Report Download - page 13

Table of Contents
Other Products and Services
Personal Connectivity Solutions Products
We offer low-power, high-performance embedded microprocessor products for personal connectivity devices. Our PCS products include low-power x86
and MIPS® architecture-based embedded processors. We design these processors to address customer needs in the non-PC Internet appliance market. Typically
these processors are used in products that require high to moderate levels of performance where key features include reduced cost, mobility and compactness.
Products that use our embedded processors also often have limited user interfaces and programmability when compared to PCs and servers.
In August 2003, we acquired the Geode™ family of microprocessor products from National Semiconductor Corporation. The Geode technology integrates
complex functionality, such as processing, system logic, graphics, and audio and video decompression on to one integrated device. AMD Geode microprocessors
are based on the x86 architecture and are optimized for power and performance. We target our AMD Geode processors for four main market segments: computer
systems commonly referred to as “enterprise-thin clients” with low power consumption and minimal memory that leverage application software from a
centralized server; low-cost network appliances; set-top boxes; and personal access devices. With the AMD Geode family of microprocessors, we are able to
extend the range of our x86-based product offerings to serve markets from embedded appliances to high-end servers.
We develop our AMD Alchemy ™ embedded processors for portable media players, Internet access points, and gateways in which low-power consumption
is a key factor. All of these products have an architecture that provides a 32-bit MIPS instruction set. They support Microsoft Windows, CE.NET, Linux,
VxWorks, and other operating systems.
We believe that our PCS products offer our customers faster time to market and lower product costs. Our strategy is to continue providing cost-effective
PCS products that our customers can deploy quickly in their applications.
Foundry Services
Prior to 2003, we provided foundry services to our former voice communications products subsidiary, Legerity, Inc., and to our former programmable
logic devices subsidiary, Vantis Corporation. We had no revenue from these services in 2003 and will not have any revenue for these services in the future.
Research and Development; Manufacturing Process Technology
Manufacturing process technology is a key determinant in the improvement of most semiconductor products. Each new generation of manufacturing
process technology has resulted in products with greater performance. We have devoted significant resources to developing and improving manufacturing
process technologies used in the production of our products. In order to remain competitive, we must continue to maintain our process technology leadership. In
particular, we have made and continue to make significant investments in manufacturing process technologies and in strategic relationships with industry-leading
companies relating to manufacturing process technology development. We may not realize our expected return on these investments if we fail to increase market
acceptance for our products, if the market for our microprocessor or Flash memory products should significantly deteriorate or if we are unable to realize the full
benefit of our strategic relationships. In addition, if we are unable to remain competitive with respect to process technology, we will be materially and adversely
affected.
Our efforts concerning research and development of advanced process technologies are focused on logic technology used for manufacturing our
microprocessors. FASL LLC’s efforts concerning research and development of advanced process technologies are focused on non-volatile memory technology
used for
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004