AMD 2004 Annual Report Download - page 9

Table of Contents
Improvements in the performance characteristics of microprocessors and decreases in production costs resulting from advances in manufacturing process
technology, as well as lower selling prices, have increased the demand for microprocessors over time. The greatest demand for our microprocessors today is from
PC manufacturers. Factors that we believe will stimulate growth in the demand for microprocessors include lower-priced PC systems, enhanced product features,
and strategic purchases of new PC systems to deploy new tools and technologies. In addition, we believe that there will be increased demand for microprocessors
from server manufacturers as enterprises continue to upgrade their networks.
Microprocessor Products
We currently offer microprocessor products for desktop and mobile PCs, servers and workstations. Our microprocessors are based on the x86 architecture.
In addition, we design them based on a superscalar reduced instruction set computer, or RISC, architecture. RISC architecture allows microprocessors to perform
fewer types of computer instructions thereby allowing the microprocessor to operate at a higher speed. We also design our microprocessors to be compatible with
operating system software such as Windows XP, Windows 2000, Windows NT ®, Windows 98 (and Windows predecessor operating systems), Linux, NetWare ®,
Solaris and UNIX.
Desktop PCs. Our microprocessors for desktop PCs consist of AMD Athlon 64 FX, AMD Athlon 64 and AMD Sempron processors. In September 2003,
we introduced our AMD Athlon 64 microprocessor, the first Windows-compatible, x86 architecture-based 64-bit PC processor. AMD Athlon 64 processors are
based on the AMD64 technology platform, which extends the industry-standard x86 instruction set architecture to 64-bit computing. We designed our AMD
Athlon 64 processors to allow simultaneous 32-bit and 64-bit computing, enabling users to protect their information technology investments by continuing to use
their 32-bit software applications while implementing 64-bit applications on the timetable of their choice. We design our AMD Athlon 64 processors for
enterprises and sophisticated PC users that seek to access large amounts of data and memory. Simultaneously with our introduction of the AMD Athlon 64
processor, we introduced the AMD Athlon 64 FX processor, designed specifically for gamers, PC enthusiasts and digital content creators who require products
that can perform graphic-intensive tasks. Our AMD Sempron microprocessors, which we introduced in July 2004, are designed for value-conscious consumers of
desktop and notebook PCs.
Mobile PCs. Our microprocessors for the mobile computing market consist of mobile AMD Athlon 64 processors, mobile AMD Sempron processors
and AMD Athlon XP-M processors. In January 2005, we announced our new AMD Turion 64 mobile technology, and we expect to introduce our AMD Turion
64 processors in the first half of 2005. Our OEM customers incorporate our processors into a variety of designs, including full-size and thin-and-light notebooks.
We have designed our mobile processor products for high-performance computing and wireless connectivity. They feature advanced power management from
AMD PowerNow!™ technology, which offers reduced power consumption and extended system battery life. We intend to continue to invest in our mobile
microprocessor product portfolio with increasing emphasis on low-power computing.
Servers and Workstations. Our x86 microprocessors for servers and workstations consist of the AMD Opteron and AMD Athlon MP processors. A
server is a powerful computer on a network that is dedicated to a particular purpose and stores large amounts of information and performs the critical functions
for that purpose. A workstation is essentially a heavy-duty desktop, designed for tasks such as computer-aided design. We introduced our first 64-bit
microprocessor for servers and workstations, AMD Opteron, in April 2003. Like the AMD Athlon 64 processors, the AMD Opteron processors for servers and
workstations are based on the AMD64 technology and are designed to allow simultaneous 32-bit and 64-bit computing. AMD Opteron processors were the first
processors to extend the industry-standard x86 instruction set architecture to 64-bit computing. AMD Opteron processors can be used in a variety of server
applications, including business processing (enterprise resource planning, customer relationship management, and supply chain management) and business
intelligence. AMD Opteron processors can also be used in workstation applications such as engineering
4
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005