AMD 2008 Annual Report Download - page 19

for demanding embedded applications traditionally served by custom silicon designs. In addition, a
distinguishing characteristic of our AMD Direct Connect Architecture based embedded processors is our AMD
Longevity Program. The AMD Longevity Program offers a select set of AMD processors with an extended
standard availability period of five years. The extended availability period addresses the requirements of
customers designing products for network, storage, blade and telecommunications servers; digital imaging;
casino gaming and military and industrial controls systems. These markets have lengthy design and qualification
cycles and longer life spans in the marketplace than typical mainstream computing products. Our embedded
microprocessor products also include the AMD Geode™ product family.
In 2008, we introduced 65-nanometer low power dual AMD Athlon embedded processors for the AM2
socket, which we designed to be compatible with certain pervious generation AMD single core processors. We
also released Quad-Core AMD Opteron embedded processors in both standard efficiency and high efficiency
which are socket-compatible with certain previous generation AMD dual core processors. Additionally, we
introduced embedded processors in ball grid array packaging, which provide a small footprint and lower height
for smaller form factor system designs.
Our embedded processor products exemplify our “x86 Everywhere” microprocessor strategy, which is our
goal for utilizing the x86 instruction set architecture to power a wide variety of devices in diverse places such as
the home, office or car, in the supply chain, in storage networks, in the data center, and/or in global
communications networks. We believe that when a greater number of devices are standardized with an x86-based
platform, end-users can benefit from the ability to run their existing x86-based software on devices that
interoperate with each other. This can accelerate and simplify the process of enabling faster, easier connectivity
and data sharing between a wide range of products, from portable consumer electronics to PCs and servers. With
our full range of embedded microprocessors, we are able to extend our x86-based product offerings to serve
markets from embedded appliances to embedded server-class products.
Chipset Market
The chipset sends data between the microprocessor and input, display and storage devices, such as the
keyboard, mouse, monitor, hard drive and CD or DVD drive. Chipsets perform essential logic functions, such as
balancing the performance of the system and removing bottlenecks. Chipsets also extend the graphics, audio,
video and other capabilities of computer systems. All desktop, notebook and server PCs incorporate a chipset. In
many PCs, the chipset is integrated with additional functions such as a GPU. An integrated chipset solution is
commonly known as an IGP (integrated graphics processor) chipset. Chipsets that do not integrate a graphics
core are referred to as discrete chipsets. By eliminating the need for a discrete GPU, IGP chipsets offer a lower
cost solution and in some circumstances can offer reduced power consumption or smaller system form factors. A
majority of desktop and notebook PCs make use of IGP chipsets, while discrete chipsets are used in higher
performance PCs and servers.
Chipset Products
Our portfolio of chipset products includes IGP and discrete chipsets targeting both the desktop and notebook
PC segments. In March 2008, we introduced the AMD 780 Series chipset designed for significant enhancements
in gaming and high-definition experiences for mainstream PC customers. In June 2008, we introduced the
AMD-7 Series chipsets for notebooks including the AMD-780G chipset with ATI Radeon HD 3200 integrated
graphics. These chipsets directly integrate support for the High Definition Multimedia Interface (HDMI) and
Digital Visual Interface (DVI) digital display standards used in many flat panel monitors and televisions.
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