AMD 2006 Annual Report Download - page 14

Table of Contents
products allows consumers to watch and record TV on their PC, listen to FM radio stations and watch DVD movies. Our latest generation of these products also
incorporates our ATI Avivo technology which enables PCs to record and playback in HD.
Workstation and Server Products. Our products for the professional workstation market consist of our FireGL™ and FireMV™ product families. We
designed our FireGL products for demanding 3D applications such as computer-aided design, while we designed our FireMV multi-view 2D workstation cards
for financial and corporate environments. We also provide products for the server market, where we leverage our graphics expertise and align our offerings to
provide stability, video quality and bus architectures that our server customers desire.
Consumer Electronics Products
Consumer Electronics Market
The semiconductor market for video, graphics and media processors in consumer electronics products addresses the need for enhancing the visual
experience provided by devices such as mobile phones, digital TVs and game consoles. Consumers value entertainment and communications products that can
deliver an engaging multimedia experience. Accordingly, semiconductor suppliers of video, graphics and media processors strive to deliver products that
improve visual realism and allow manufacturers of mobile phones, digital TVs and game consoles the opportunity to differentiate their products.
Handheld Market. In recent years, mobile phones have transitioned towards color displays with higher resolutions that deliver a variety of multimedia
features. Manufacturers are offering functionality such as built-in digital cameras and camcorders, MP3 audio playback, video playback, mobile-TV reception
and 3D gaming in an increasing percentage of mobile phones, thereby increasing the opportunity to supply media processors to mobile phone manufacturers.
Digital TV Market. The market for digital TVs is growing, driven in part by the transition of terrestrial broadcast television transmissions from analog to
digital in many different regions throughout the world. For example, on February 18, 2009, full power television stations in the United States will stop analog
broadcasting and transition to digital broadcasting. This conversion is supported by a U.S. Federal Communications Commission mandate that requires
electronics manufacturers to include digital tuners in all new television sets by March 2007.
There is also a worldwide shift in the television industry from analog cathode ray tube, or CRT, displays to digital flat panel displays such as LCD and
plasma. These flat panel displays are able to support larger screen sizes and higher resolutions. Producing the highest quality images on these advanced
televisions is fundamental to television manufacturers. Semiconductor graphics solutions play an integral role in improving video image quality to enhance the
user viewing experience.
Game Consoles. Semiconductor graphics suppliers have leveraged their core visual and graphics processing technologies developed for the PC market
by providing solutions to game console manufacturers. In this market, semiconductor graphics suppliers work alongside game console manufacturers to enhance
the visual experience for users of sophisticated video games.
Consumer Electronics Products
We continue to leverage our core technology, visual processing expertise and power management know-how to meet the needs of certain consumer
electronics markets. We have initially targeted three categories of the consumer electronics market: (i) handheld devices, including mobile phones; (ii) digital
TVs; and (iii) game consoles.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007