AMD 2011 Annual Report Download - page 20

for projected manufacturing capacity that we have requested for our microprocessors, including our APU
products. However, we are currently in the process of negotiating a second amendment to the WSA, including
the pricing methodology. If we do not successfully conclude our negotiations, it could have a material adverse
impact on our gross margins and our results of operations.
The WSA terminates no later than March 2, 2024. GF has agreed to use commercially reasonable efforts to
assist us to transition the supply of products to another provider, and to continue to fulfill purchase orders for up
to two years following the termination or expiration of the WSA. During the transition period, pricing for
microprocessor products will remain as set forth in the WSA, but our purchase commitments to GF will no
longer apply.
GF manufactures our microprocessors on 300 millimeter wafers using primarily 45nm and 32nm process
technology.
Taiwan Semiconductor Manufacturing Company. We also have foundry arrangements with Taiwan
Semiconductor Manufacturing Company (TSMC) for the production of certain graphics processors and chipsets,
embedded processors, and APU products.
We are in production in TSMC’s 300 millimeter and 200 millimeter fabrication facilities in technologies
ranging from 65nm to 28nm. Smaller process geometries can lead to gains in performance, lower power
consumption and lower per unit manufacturing costs. We continue to have our products manufactured on more
advanced process technology because using more advanced process technology can contribute to lower product
manufacturing costs and improve a product’s performance and power efficiency.
Other Third-Party Manufacturers. We outsource board-level graphics product manufacturing to third-
party manufacturers.
Assembly, Test, Mark and Packaging Facilities
We own and operate three assembly, test, mark and packaging facilities. Some wafers for our
microprocessor, graphics processor and embedded processor products are delivered from third-party foundries to
our assembly, test, mark and packaging facilities. Our assembly, test, mark and packaging facilities are described
in the chart set forth below:
Facility Location
Approximate
Manufacturing
Area Square
Footage Activity
Penang, Malaysia ................................. 206,000 Assembly, Test, Mark & Packaging
Singapore ....................................... 215,000 Test, Mark & Packaging
Suzhou, China .................................... 100,000 Assembly, Test, Mark & Packaging
The remaining wafers for our graphics products are delivered from third party foundries to our test,
assembly and packaging partners located in Asia-Pacific region who package and test the final semiconductor
products.
Intellectual Property and Licensing
We rely on contracts and intellectual property rights to protect our products and technologies from
unauthorized third-party copying and use. Intellectual property rights include copyrights, patents, patent
applications, trademarks, trade secrets and maskwork rights. As of December 31, 2011 we had approximately
4,500 patents in the United States and approximately 1,500 patent applications pending in the United States. In
certain cases, we have filed corresponding applications in foreign jurisdictions. We expect to file future patent
applications in both the United States and abroad on significant inventions, as we deem appropriate. We do not
believe that any individual patent, or the expiration thereof, is or would be material to our business.
14