AMD 2012 Annual Report Download - page 15

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include graphics, audio, video and other capabilities. All desktop and mobile PCs as well as servers have a
chipset. In many PCs, the chipset includes a graphics processing unit (GPU). A GPU within the chipset solution
is commonly known as an integrated graphics processor (IGP), and such a chipset may be called an IGP chipset.
In a system without an integrated graphics processor, a discrete GPU is usually required. By not necessitating a
discrete GPU, IGP chipsets offer a lower cost solution and reduced power consumption and enable smaller
system form factors. With our APU architecture, the GPU is included in the APU and the AMD Controller Hub
chip performs the input and output functions of the chipset. We believe that the combination of an APU and the
AMD Controller Hub will replace our market for IGP chipsets.
Our portfolio of chipset products includes chipsets with and without IGPs for desktop PCs and servers, and
AMD Controller Hub-based chipsets for our APUs. We offer AMD A50-Series, A60-Series and A70-Series
chipsets for our mobile PC platforms. As well, we offer AMD 9-Series, 8-Series, 7-Series Discrete and AMD 7-
Series Integrated chipsets for desktop PCs.
Graphics
Graphics Market
A graphics solution can be in the form of either an APU, a GPU, an IGP, or a combination of a GPU with
one of the other foregoing products working in tandem. The semiconductor graphics market addresses the need
for visual or parallel processing in various computing and entertainment platforms such as desktop PCs, mobile
PCs and workstations
APUs and IGPs deliver discrete GPU level functionality for value and mainstream PCs while discrete GPUs
are specifically architected for high performance graphics processing. A dedicated GPU and CPU work in
tandem to increase overall speed and performance of the system. Users of these graphics products value a rich
visual experience, particularly in the high-end enthusiast market where consumers often seek out the fastest and
highest performing visual processing products to enable the most compelling and immersive experiences.
Moreover, for many consumers, the PC is evolving from a traditional data processing and communications
device to an entertainment platform. Visual realism and graphical display capabilities are key elements of
product differentiation among various product platforms. This has led to the increasing creation and use of
processing intensive multimedia content for PCs and to manufacturers designing PCs for playing games,
displaying photos and capturing TV and other multimedia content, viewing online videos, photo editing and
managing digital content. In turn, the trend has contributed to the development of higher performance graphics
solutions.
Graphics Products
Our customers generally use our graphics solutions to increase the speed of rendering images and to
improve image resolution and color definition. We develop our products for use in desktop and mobile PCs,
professional workstations, servers and gaming consoles. With each of our graphics products, we provide drivers
and supporting software packages that enable the effective use of these products under a variety of operating
systems and applications. In addition, our recent generation graphics products have Linux®driver support.
Heavy computational workloads have traditionally been processed on a CPU, but we believe that the
industry is shifting to a new computing paradigm that increasingly relies more on the GPU or a combination of
GPU and CPU. AMD Accelerated Parallel Processing or GPGPU (General Purpose GPU) refers to a set of
advanced hardware and software technologies that enable AMD GPUs, working in concert with the computer
system’s CPUs, to accelerate applications beyond traditional graphics and video processing by allowing the
CPUs and GPUs to process information cooperatively. Heterogeneous computing, which refers to computer
systems that use more than one kind of processor, enables PCs and servers to run computationally-intensive tasks
more efficiently, which we believe provides a superior application experience to the end user.
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