AMD 2007 Annual Report Download - page 22

Table of Contents
Should we choose to build the facility, the State of New York is required to issue bonds or otherwise fund the project and related research and development in the
amount of $650 million. Actual disbursement of funds occurs as we submit appropriate documentation verifying that expenditures on the project have been
incurred. If we move forward with the project, we must complete the construction of the facility in accordance with the final plans and specifications approved in
writing by the ESDC and must maintain business operations on the Luther Forest Technology Campus for a minimum of seven years after the date full
employment at the facility is first achieved. Funds disbursed to us may be subject to repayment, in whole or part, if we do not attain and or maintain certain levels
of employment for specified periods of time.
Our current microprocessor assembly and test facilities are described in the chart set forth below:
Facility Location
Approximate
Manufacturing
Area Square
Footage Activity
Penang, Malaysia 206,000 Assembly
Singapore 380,000 Test, Mark & Packaging
Suzhou, China 44,000 Test, Mark & Packaging
Some assembly and final testing of our microprocessor and embedded processor products is performed by subcontractors in the United States and Asia.
With respect to our graphics and chipset products and products for consumer electronics devices, we have strategic relationships with three semiconductor
foundries, Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corp. (UMC) and Chartered. Currently, we are in volume
production in TSMC’s and UMC’s 300-millimeter fabrication facilities. As of December 29, 2007, our graphics and chipset products and products for consumer
electronics devices were manufactured on 55-, 65-, 80-, 90-, 110-, 130-, 150- or 180- nanometer process technologies at third party foundries. Smaller process
geometries can lead to gains in graphics processing performance, lower power consumption and lower per unit manufacturing costs.
From the foundry, wafers for our graphics products are delivered to our test, assembly and packaging partners including Advanced Semiconductor
Engineering Group, Amkor, King Yuan Electronics, Siliconware Precision Industries and STATS-Chippac, who package and test the final application-specific
integrated circuit.
We outsource board-level graphics product manufacturing to third-party manufacturers. These include Celestica, Foxconn and PC Partner with locations in
China. Our facility in Markham, Ontario, Canada is primarily devoted to prototyping for new graphics product introductions.
Raw Materials
Our manufacturing processes require many raw materials, such as silicon wafers, IC packages, mold compound, substrates and various chemicals and
gases, and the necessary equipment for manufacturing. We obtain these materials and equipment from a large number of suppliers located throughout the world.
Certain raw materials we use in manufacturing our microprocessor products or that are used in the manufacture of our graphics products are available only from a
limited number of suppliers. Interruption of supply or increased demand in the industry could cause shortages and price increases in various essential materials.
Intellectual Property and Licensing
We rely on contracts and intellectual property rights to protect our products and technologies from unauthorized third-party copying and use. Intellectual
property rights include copyrights, patents, patent applications, trademarks, trade secrets and maskwork rights. As of December 29, 2007, we had more than
7,000 patents in the United States and over 1,700 patent applications pending in the United States, including more than 600 patents in the United States and 400
patent applications in the United States that we acquired from ATI. In
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008