AMD 2014 Annual Report Download - page 3

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STRENGTHENING OUR COMPUTING AND GRAPHICS BUSINESS
The PC has been an integral part of AMD’s success for the past several decades and we believe it will
continue to be one of the key devices in the computing landscape going forward. As the PC market
matures, annual sales are stabilizing around 300 million units. High-performance compute and
graphics chips sales are expected to reach approximately $40 billion in 2017. Our PC strategy is
focused on creating great products with graphics and compute performance-per-watt leadership. We
have unmatched IP and design capabilities to create more instinctive, intuitive, and immersive PC
experiences that enable:
• New levels of performance and efficiency for commercial and consumer PCs;
• Absolute performance leadership for professional content creators;
• The ultimate in visual and audio immersion for gaming, ultra-high definition displays, and virtual
reality.
The strong computing and graphics products we plan to introduce in 2015 and beyond will bring more
natural user experiences, and expanded productivity and entertainment capabilities to both traditional PCs
and new types of devices. Our focus will be on profitable growth and ensuring we deepen our relationships
with key customers as we deliver new and differentiated experiences.
EXPANDING OUR ENTERPRISE, EMBEDDED, AND SEMI-CUSTOM BUSINESS
In the last two years, we have successfully built our Enterprise, Embedded, and Semi-Custom
solutions segment into a $2.4 billion business with strong momentum and a solid design win pipeline
capable of delivering continued growth. The best example of our progress executing this strategy is the
rapid growth of our semi-custom gaming SoC shipments, which more than doubled from 2013 to 2014.
Going forward, we see significant demand for AMD solutions in the enterprise, embedded, and high-
performance computing spaces which address the growth of data and content in a world of 50 billion
connected devices. We are focused on a number of key opportunities in the data center, storage,
telecom infrastructure, and medical imaging markets as well as visually-demanding embedded
applications such as digital signage, gaming, and machine vision for factory automation. Revenue for
high-performance silicon across these markets is expected to top $25 billion in 2017. AMD is the only
company in the industry that can provide customers with a “continuum” of standard-to-custom products
that can leverage high-performance 64-bit x86 and ARM processor cores, industry-leading GPU IP,
and highly-efficient modular design capabilities. We believe these capabilities can drive continued
growth as we expand our presence in targeted markets with customers who require higher levels of
compute and visualization performance.
OUR PATH FORWARD
I am truly excited by the opportunities in front of us. As we go through 2015, we will continue to
sharpen our go-to-market approach and investment priorities with a focus on building great products,
deepening our customer relationships, and simplifying our business.
AMD is at our best when we are delivering differentiated technology and innovation to our customers.
Now, we must leverage our unique position to enable more industry-leading products across a broader,
yet targeted set of customers and markets.
All of the key elements are in place – clear priorities, unique technical capabilities, talented people, and
a streamlined organization – to create a faster, bolder AMD capable of realizing our full potential.
Dr. Lisa Su
President and Chief Executive Officer