AMD 2007 Annual Report Download - page 40

Table of Contents
Malaysia and Singapore. In addition, our graphics and chipset products and products for consumer electronics devices are manufactured, assembled and tested by
independent third parties in the Asia-Pacific region and inventory related to those products is stored there, particularly in Taiwan. We also have international
sales operations and as part of our business strategy, we are continuing to seek expansion of product sales in high growth markets. Our international sales as a
percentage of our total consolidated revenue was 87 percent in 2007, and China was one of our largest and fastest growing markets.
The political and economic risks associated with our operations in foreign countries include, without limitation:
• expropriation;
• changes in a specific country’s or region’s political or economic conditions;
• changes in tax laws, trade protection measures and import or export licensing requirements;
• difficulties in protecting our intellectual property;
• difficulties in achieving headcount reductions;
• changes in foreign currency exchange rates;
• restrictions on transfers of funds and other assets of our subsidiaries between jurisdictions;
• changes in freight and interest rates;
• disruption in air transportation between the United States and our overseas facilities; and
• loss or modification of exemptions for taxes and tariffs.
Any conflict or uncertainty in the countries in which we operate, including public health or safety, natural disasters or general economic factors, could
have a material adverse effect on our business. Any of the above risks, should they occur, could result in an increase in the cost of components, production
delays, general business interruptions, delays from difficulties in obtaining export licenses for certain technology, tariffs and other barriers and restrictions,
potentially longer payment cycles, potentially increased taxes, restrictions on the repatriation of funds and the burdens of complying with a variety of foreign
laws, any of which could ultimately have a material adverse effect on us.
Worldwide economic and political conditions may adversely affect demand for our products.
Worldwide economic conditions may adversely affect demand for our products. For example, China’s economy has been growing at a fast pace over the
past several years, and China was one of our largest and fastest growing markets. A decline in economic conditions in China could lead to declining worldwide
economic conditions. If economic conditions decline, whether in China or worldwide, we could be materially adversely affected.
The occurrence and threat of terrorist attacks and the consequences of sustained military action in the Middle East have in the past, and may in the future,
adversely affect demand for our products. Terrorist attacks may negatively affect our operations, directly or indirectly, and such attacks or related armed conflicts
may directly impact our physical facilities or those of our suppliers or customers. Furthermore, these attacks may make travel and the transportation of our
products more difficult and more expensive, which could materially adversely affect us.
The United States has been and may continue to be involved in armed conflicts that could have a further impact on our sales and our supply chain. Political
and economic instability in some regions of the world may also result and could negatively impact our business. The consequences of armed conflicts are
unpredictable and we may not be able to foresee events that could have a material adverse effect on us.
35
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008