AMD 2013 Annual Report Download - page 22

Other Third-Party Manufacturers. We outsource board-level graphics product manufacturing to third-
party manufacturers. We also outsource board-level and system-level product manufacturing to third-party
manufacturers for our SeaMicro dense server and storage products.
Assembly, Test, Mark and Packaging Facilities
We own and operate two assembly, test, mark and packaging facilities. Some wafers for our 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 ................................. 150,000 Assembly, Test, Mark & Packaging
Suzhou, China .................................... 100,000 Assembly, Test, Mark & Packaging
The remaining wafers for our 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 28, 2013, we had approximately
4,650 patents in the United States and approximately 1,700 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 of any patent, 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.
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.
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