AMD 2014 Annual Report Download - page 11

Chipset. A chipset is a generic term referring to a collection of system level components that manage data
flow among a microprocessor or microprocessors, memory and peripherals (such as CD ROM drives, DVD
drives and USB peripherals). Chipsets perform essential logic functions, balance a system’s performance and
provide system control and power management functions. Some chipsets have graphics capabilities by including
an integrated graphics processor (IGP) within the chipset. A chipset with an IGP is known as an IGP chipset. IGP
chipsets can offer a lower cost, reduced power alternative and are often also used in smaller form factors.
Systems that are powered by an APU or by a CPU and discrete GPU combination often do not have a chipset and
instead use an AMD Controller Hub chip to perform the functions of a chipset. As a result, we believe that either
an APU and AMD Controller Hub chip combination or an SoC, which already includes a chipset, will eventually
replace the market for IGP chipsets.
Our x86 Microprocessor and Chipset Products
Our microprocessors are incorporated into computing platforms, which are a collection of technologies that
are designed to work together to provide a more complete computing solution and to enable and advance the
computing components. We believe that integrated, balanced computing platforms consisting of microprocessors,
chipsets and GPUs that work together at the system level bring end users improved system stability, increased
performance and enhanced power efficiency. In addition, we believe our customers also benefit from an all-AMD
platform (consisting of an APU or CPU, a discrete GPU and a chipset or an AMD Fusion Controller Hub chip),
as we are able to optimize interoperability, provide them with a single point of contact for the key platform
components and enable them to bring the platforms to market faster in a variety of client and server system form
factors.
We currently base our microprocessors and chipsets on the x86 instruction set architecture and AMD’s
Direct Connect Architecture, which connects an on-chip memory controller and input/output (I/O) channels
directly to one or more microprocessor cores. We typically integrate two or more processor cores onto a single
die, and each core has its own dedicated cache, which is memory that is located on the semiconductor die,
permitting quicker access to frequently used data and instructions. Some of our microprocessors have additional
levels of cache such as L2, or second-level cache, and L3, or third-level cache, to enable faster data access and
higher performance.
We focus on continually improving the energy efficiency of our products through our design principles and
innovations in power management technology. To that end, we offer CPUs, GPUs, APUs, SoCs and chipsets
with multiple low power states that utilize lower clock speeds and voltages to reduce processor power
consumption during active and idle times. The use of intelligent, dynamic power management is designed to
create lower energy use by allowing compute applications to be completed quickly and efficiently, enabling a
return to the ultra-low power idle state.
Desktop. Our APUs for desktop PCs consist primarily of the AMD A-Series and AMD E-Series APUs.
We also offer AMD FX CPUs for the enthusiast market. In January 2014, we launched the AMD A10-7850K and
A10-7700K, formerly codenamed “Kaveri,” for desktops. “Kaveri” is the world’s first APU to include HSA
features, AMD TrueAudio technology for improved fidelity and immersive audio and the HD gaming experience
of AMD’s Mantle application programming interface (API). Our Mantle API is designed to allow game
developers to take greater advantage of the full capability of our Graphic Core Next (GCN) architecture. Our
GCN is our new approach to the design of a consumer GPU. In July 2014, we expanded our desktop AMD A-
Series APU with the AMD A10-7800 APU, our high performance APU. We also introduced the AMD A8-7600,
AMD A6-7400K and AMD A4-7300 APUs, which are designed to allow consumers to upgrade their application
and office experience on their desktop PC. The latest generation of our AMD FX CPUs is based on the
“Piledriver” x86 multi-core architecture. Our AMD FX CPUs are designed for multitasking, high resolution
gaming and HD media processing and come in eight-, six- and quad-core versions.
Notebook and 2-in-1s. In response to consumer demand, we continue to invest in designing and
developing high performing and low power notebook PC platforms. Our APUs for notebook PCs consist
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