AMD 2002 Annual Report Download - page 13

Table of Contents
manufactured using our 130 nanometer process technology. Our manufacturing facility in Dresden, Germany (Fab 30) uses 130 nanometer manufacturing
process to produce our most advanced microprocessors, including our AMD Athlon XP processor.
Flash memory device production at year-end 2002 was on 170, 250 and 350 nanometer process technologies. We are transitioning some of our Flash
memory devices to production on 130 nanometer process technology in 2003.
In 2002, we entered into several strategic relationships with industry leading companies. Through these relationships, we intend our manufacturing
facilities and processes to remain state-of-the-art, while improving our cost structure. For example, in December 2002, we changed our logic process
development strategy and entered into an agreement with IBM to jointly develop new logic process technologies for use in future high-performance
microprocessor products. As a result of this agreement, we are ramping down silicon processing associated with logic research and development in our
Submicron Development Center (SDC) in Sunnyvale, California and will be moving this work to IBM’s facility in East Fishkill, New York. In addition, in June
2002 we entered into a joint venture alliance with Infineon Technologies and Dupont Photomasks to construct and operate an advanced research and
development and pilot line photomask facility in Dresden, Germany.
Our expenses for research and development were $816 million in 2002, $651 million in 2001 and $642 million in 2000. These expenses represented 30
percent of sales in 2002, 17 percent of net sales in 2001 and 14 percent of net sales in 2000.
Competition
The IC industry is intensely competitive. Products compete on performance, quality, reliability, price, adherence to industry standards, software and
hardware compatibility, marketing and distribution capability, brand recognition and availability. Technological advances in the industry result in frequent
product introductions, regular price reductions, short product life cycles and increased product capabilities that may result in significant performance
improvements.
In each area of the digital IC market in which we participate, we face competition from different companies. With respect to microprocessors, Intel holds a
dominant market position. With respect to Flash memory products, our principal competitors are Intel, STMicroelectronics N.V., Sharp Electronics Corporation,
Atmel Corporation, Samsung, Toshiba and Fujitsu, our joint venture partner in FASL. With respect to PCS products, our principal competitors are Broadcom,
Hitachi, Intel, Intersil, Motorola, Texas Instruments and STMicroelectronics.
Manufacturing Facilities
Our current IC manufacturing facilities are described in the chart set forth below:
Facility Location
Wafer Size
(Diameter in
Inches)
Production
Technology
(in Nanometers)
Approximate
Clean Room
(Square Footage)
Austin, Texas
Fab 25 8 130 and 170 120,000
Aizu-Wakamatsu, Japan
FASL JV1(1) 8 350 70,000
FASL JV2(1) 8 250 and 350 91,000
FASL JV3(1) 8 130 and 170 118,000
Dresden, Germany
Fab 30 8 130 115,100
(1) We own 49.992 percent of FASL. Fujitsu owns 50.008 percent of FASL.
8
Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003