AMD 1999 Annual Report Download - page 6

PART I
ITEM 1. BUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report that are forward-looking are based on current
expectations and beliefs and involve numerous risks and uncertainties that
could cause actual results to differ materially. The forward-looking
statements relate to, among other things, operating results; anticipated cash
flows; capital expenditures; adequacy of resources to fund operations and
capital investments; our ability to transition to new process technologies;
our ability to produce AMD Athlon(TM) microprocessors in the volume required
by customers on a timely basis; our ability, and the ability of third parties,
to provide timely infrastructure solutions (motherboards and chipsets) to
support AMD Athlon microprocessors; our ability to increase customer and
market acceptance of AMD Athlon microprocessors; our ability to maintain
average selling prices for AMD Athlon microprocessors; our ability to increase
manufacturing capacity to meet the demand for Flash memory products; the
effect of foreign currency hedging transactions; our new submicron integrated
circuit manufacturing and design facility located in Dresden, Germany (Dresden
Fab 30); and the Fujitsu AMD Semiconductor Limited (FASL) manufacturing
facilities. For a discussion of the factors that could cause actual results to
differ materially from the forward-looking statements, see "Financial
Condition" and "Risk Factors" and such other risks and uncertainties as set
forth below in this report or detailed in our other Securities and Exchange
Commission reports and filings.
General
Advanced Micro Devices, Inc. was incorporated under the laws of Delaware on
May 1, 1969. Our mailing address and executive offices are located at One AMD
Place, Sunnyvale, California 94086, and our telephone number is (408) 732-
2400. Unless otherwise indicated, references to "AMD," "we" and "us" in this
report include our subsidiaries.
We are a semiconductor manufacturer with manufacturing facilities in the
U.S., Europe and Asia and sales offices throughout the world. Our products
include a wide variety of industry-standard integrated circuits (ICs) which
are used in many diverse product applications such as telecommunications
equipment, data and network communications equipment, consumer electronics,
personal computers (PCs) and workstations.
For segment information with respect to sales, operating results and
identifiable assets, refer to the information set forth in Note 9 of the
Consolidated Financial Statements contained in our 1999 Annual Report to
Stockholders.
For a discussion of the risk factors related to our business operations,
please see the "Cautionary Statement Regarding Forward-Looking Statements" and
"Risk Factors" and "Financial Condition" sections set forth in Management's
Discussion and Analysis of Financial Condition and Results of Operations
contained in our 1999 Annual Report to Stockholders.
The IC Industry
The IC market has grown dramatically over the past ten years, driven
primarily by the demand for electronic business and consumer products. Today,
virtually all electronic products use ICs, including PCs and related
peripherals, voice and data communications and networking products, facsimile
and photocopy machines, home entertainment equipment, industrial control
equipment and automobiles.
The market for ICs can be divided into separate markets for digital and
analog devices. We participate primarily in the market for digital ICs. The
three types of digital ICs used in most electronic systems are:
. microprocessors, which are used for control and computing tasks;
. memory circuits, which are used to store data and programming
instructions; and
. logic circuits, which are employed to manage the interchange and
manipulation of digital signals within a system.
A discussion of the principal parts of the digital IC market in which we
participate follows.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 2000