AMD 2008 Annual Report Download - page 12

General
We are a global semiconductor company with facilities around the world. Within the global semiconductor
industry, we offer primarily:
(i) x86 microprocessors, for the commercial and consumer markets, embedded microprocessors for
commercial, commercial client and consumer markets and chipsets for desktop and notebook personal
computers, or PCs, professional workstations and servers; and
(ii) graphics, video and multimedia products for desktop and notebook PCs, including home media PCs,
professional workstations and servers and technology for game consoles.
For financial information about geographic areas and for segment information with respect to revenues and
operating results, refer to the information set forth in Note 10 of our consolidated financial statements, beginning
on page 134 below.
Recent Developments
Digital Television and Handheld Business Units. During the second quarter of 2008, we decided to divest
our Digital Television and Handheld business units and classify them as discontinued operations in our financial
statements. Prior to the second quarter of 2008, these business units were reported in our Consumer Electronics
segment.
In the fourth quarter of 2008, we completed the sale of our Digital Television business unit to Broadcom
Corporation for $141.5 million in cash. During the same quarter, we determined that the discontinued operations
classification criteria for the Handheld business unit were no longer met. Accordingly, we reclassified the results
of the Handheld business unit from discontinued operations to continuing operations.
In the first quarter of 2009, we completed the sale of certain graphics and multimedia technology assets and
intellectual property that were formerly part of our Handheld business unit to Qualcomm Incorporated for $65
million in cash. In addition, certain employees of the Handheld business were transferred to Qualcomm. We
retained the AMD Imageon™ media processor brand and the right to continue selling the products that were part
of the Handheld business unit. We intend to support our existing handheld products and customers through the
current product lifecycles. However, we do not intend to develop any new handheld products or engage new
customer programs beyond those already committed.
Proposed Manufacturing Joint Venture. On October 6, 2008, we entered into a Master Transaction
Agreement with Advanced Technology Investment Company LLC (ATIC) and West Coast Hitech L.P., (WCH),
acting through its general partner, West Coast Hitech G.P., Ltd. which was further amended on December 5,
2008. Pursuant to the Master Transaction Agreement, we and ATIC agreed to form a manufacturing joint
venture, initially to be called “The Foundry Company.” The Foundry Company will manufacture semiconductor
products and provide certain foundry services to us.
Pursuant to the Master Transaction Agreement, we agreed to contribute certain assets and liabilities to The
Foundry Company in exchange for securities of The Foundry Company and the assumption of specified AMD
liabilities by The Foundry Company. Specifically, we agreed to contribute our ownership interests in certain of
our subsidiaries including the groups of German subsidiaries owning our wafer manufacturing facilities in
Dresden, Germany, Fab 38 and Fab 36, other manufacturing assets, employees performing manufacturing-related
functions, certain real property, tangible personal property, inventories, books and records, a portion of our patent
portfolio and intellectual property, and rights under certain material contracts and permits. In exchange, The
Foundry Company agreed to issue to us one Class A Ordinary Share, 1,090,950 Class A Preferred Shares and
700,000 Class B Preferred Shares and to assume certain liabilities, including the assumption of approximately
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