AMD 2012 Annual Report Download - page 23

Assembly, Test, Mark and Packaging Facilities
We own and operate two assembly, test, mark and packaging facilities. Some wafers for our microprocessor,
graphics processor and embedded processor products are delivered from third-party foundries to our assembly,
test, mark and packaging facilities. Our assembly, test, mark and packaging facilities are described in the chart
set forth below:
Facility Location
Approximate
Manufacturing
Area Square
Footage Activity
Penang, Malaysia ................................. 206,000 Assembly, Test, Mark & Packaging
Suzhou, China .................................... 100,000 Assembly, Test, Mark & Packaging
The remaining wafers for our graphics products are delivered from third party foundries to our test,
assembly and packaging partners located in the Asia-Pacific region who package and test the final semiconductor
products.
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, 2012, we had approximately
4,700 patents in the United States and approximately 1,600 patent applications pending in the United States. In
certain cases, we have filed corresponding applications in foreign jurisdictions. We expect to file future patent
applications in both the United States and abroad on significant inventions, as we deem appropriate. We do not
believe that any individual patent, or the expiration thereof, is or would be material to our business.
As is typical in the semiconductor industry, we have numerous cross-licensing and technology exchange
agreements with other companies under which we both transfer and receive technology and intellectual property
rights. One such agreement is the cross-license agreement that we entered into with Intel on November 11, 2009,
in connection with the settlement of our litigation. Under the cross license agreement, Intel has granted to us and
our subsidiaries, and we have granted Intel and its subsidiaries, non-exclusive, royalty-free licenses to all patents
that are either owned or controlled by the parties at any time that have a first effective filing date or priority date
prior to the five-year anniversary of the effective date of the cross license agreement, referred to as the “Capture
Period,” to make, have made, use, sell, offer to sell, import and otherwise dispose of certain semiconductor- and
electronic-related products anywhere in the world. Under the cross license agreement, Intel has rights to make
semiconductor products for third parties, but the third party product designs are not licensed as a result of such
manufacture. We have rights to perform assembly and testing for third parties but not rights to make
semiconductor products for third parties. The term of the cross license agreement continues until the expiration
of the last to expire of the licensed patents, unless earlier terminated. A party can terminate the cross license
agreement or the rights and licenses of the other party if the other party materially breaches the cross license
agreement and does not correct the noticed material breach within 60 days. Upon such termination, the
terminated party’s license rights terminate but the terminating party’s license rights continue, subject to that
party’s continued compliance with the terms of the cross license agreement. The cross license agreement and the
Capture Period will automatically terminate if a party undergoes a change of control (as defined in the cross
license agreement) and both parties’ licenses will terminate. Upon the bankruptcy of a party, that party may
assume, but may not assign, the cross license agreement, and in the event that the cross license agreement cannot
be assumed, the cross license agreement and the licenses granted will terminate.
We also have a patent cross license agreement with GF pursuant to which each party granted to the other a
non-exclusive license under patents filed by a party (or are otherwise acquired by a party) within a certain
number of years following the effective date of the agreement. In 2009, under the agreements with GF, we
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