AMD 2004 Annual Report Download - page 10

Table of Contents
and digital content creation software, and other information technology infrastructure applications such as intensive Web serving and messaging.
Dual-Core Processors. We are currently developing dual-core processor technology, which we believe provides a path for increasing processor
performance with a minimal increase in power consumption. In August 2004, we demonstrated the first x86 dual-core processor when we showed a Hewlett
Packard HP Proliant server powered by our AMD Opteron dual-core processors. We plan to offer dual-core processors for servers and workstations in mid-2005,
followed by dual-core processors for the PC market in the second half of 2005.
Chipsets. We also sell chipset products and make available motherboard reference design kits, designed to support our microprocessors for use in PCs and
embedded products. A chipset provides the interface between all of a PC’s subsystems and sends data from the microprocessor to all the input/output and storage
devices, such as the keyboard, mouse, monitor and hard drive. The primary reason we offer these products to our customers is to provide them with a solution
that will allow them to use our microprocessors and develop and introduce their products into the market more quickly.
Our AMD Opteron and AMD Athlon 64 processors support HyperTransport ™ technology, which is a high-bandwidth communications interface we
initially developed, as well as integrated memory controllers that enable substantially higher performance than existing, non-integrated memory controller
architectures. We expect our advanced architecture to provide users with even greater performance improvements as operating systems and software applications
begin leveraging the benefits of our 64-bit architecture. To that end, we work with Microsoft to incorporate 64-bit support into the Windows operating system.
Microsoft has indicated that it intends to release its Windows Server 2003 Service Pack 1, Windows Server 2003 for 64-bit Extended Systems and Windows XP
64-bit Extended Systems in the first half of 2005. We believe that the backward compatibility of our AMD64-based processors will allow users to migrate more
easily from current 32-bit operating systems and applications to future 64-bit operating systems and applications on a common hardware platform.
The Flash Memory Market
Flash memory is an important semiconductor component used in electronic devices such as mobile phones, digital cameras, DVD players, set top boxes,
MP3 players and automotive electronics such as navigation systems. Flash memory differs from other types of memory due to its ability to retain stored
information after power is turned off. Most electronic products use Flash memory to store important program instructions, or code, as well as multimedia content,
or data. Code storage retains the basic operating instructions, operating system software or program code, which allows an electronic product to function while
data storage retains digital content, such as multimedia files. For example, Flash memory in camera phones retains both the program code, which enables users to
turn on and operate the phone, and also stores data such as digital photos.
The Flash memory market can be divided into three major categories based on application. Portable, battery-powered communications applications are
categorized as “wireless.” Solid-state removable memory applications are categorized as “removable storage.” All other applications, such as consumer and
automotive electronics, are categorized as “embedded.” Applications within the wireless category include mobile phones, smart phones and personal digital
assistants, or PDAs. Applications within the removable storage category include USB drives and memory cards. Applications within the embedded category
include consumer electronics, automotive electronics and networking and telecom equipment such as hubs, switches and routers. Currently, we serve the wireless
and embedded categories of the NOR Flash memory market with our Spansion Flash memory products.
There are two major architectures of Flash memory employed in the market today: NOR and NAND. NOR Flash memory, which is generally more
reliable than NAND Flash memory and less prone to data corruption, is typically used to store program code. NAND Flash memory has been generally less
expensive to manufacture and is typically used in devices that require high-capacity data storage such as memory cards for digital cameras and MP3 players.
Within the Flash memory market, we sell NOR Flash memory products.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005