Advanced Micro Devices

Advanced Micro Devices, Inc. (abbreviated AMD; NYSE: AMD) is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets. Its main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and processor technologies for handheld devices, digital television and game consoles.

AMD is the second-largest global supplier of microprocessors based on the x86 architecture after Intel Corporation, and the third-largest supplier graphics processing units. It also owns 21 percent of Spansion, a supplier of non-volatile flash memory. In 2007, AMD ranked eleventh among semiconductor manufacturers.^[1]

General history

Advanced Micro Devices was founded on May 1, 1969, by a group of former executives from Fairchild Semiconductor, including Jerry Sanders, III, Ed Turney, John Carey, Sven Simonsen, Jack Gifford and three members from Gifford's team, Frank Botte, Jim Giles, and Larry Stenger. The company began as a producer of logic chips, then entered the RAM chip business in 1975. That same year, it introduced a reverse-engineered clone of the Intel 8080 microprocessor. During this period, AMD also designed and produced a series of bit-slice processor elements (Am2900, Am29116, Am293xx) which were used in various minicomputer designs.

During this time, AMD attempted to embrace the perceived shift towards RISC with their own AMD 29K processor, and they attempted to diversify into graphics and audio devices as well as EPROM memory. It had some success in the mid-80s with the AMD7910 and AMD7911 "World Chip" FSK modem, one of the first multistandard devices that covered both Bell and CCITT tones at up to 1200 baud half duplex or 300/300 full duplex. While the AMD 29K survived as an embedded processor and AMD spinoff Spansion continues to make industry leading flash memory, AMD was not as successful with its other endeavors. AMD decided to switch gears and concentrate solely on Intel-compatible microprocessors and flash memory. This put them in direct competition with Intel for x86 compatible processors and their flash memory secondary markets.

It has been reported in December 2006 that AMD along with its main rival in the graphics industry nVidia, received subpoenas from the Justice Department regarding possible antitrust violations in the graphics card industry, including the act of fixing prices.^[2]

Litigation with Intel

AMD has a long history of litigation with former partner and x86 creator Intel.^[3][4][5]

• In 1986 Intel broke an agreement it had with AMD to allow them to produce Intel's micro-chips for IBM; AMD filed for arbitration in 1987 and the arbitrator decided in AMD's favor in 1992. Intel disputed this, and the case ended up in the Supreme Court of California. In 1994, that court upheld the arbitrator's decision and awarded damages for breach of contract.
• In 1990, Intel brought a copyright infringement action alleging illegal use of its 287 microcode. The case ended in 1994 with a jury finding for AMD and its right to use Intel's microcode in its microprocessors through the 486 generation.
• In 1997, Intel filed suit against AMD and Cyrix Corp. for misuse of the term MMX. AMD and Intel settled, with AMD acknowledging MMX as a trademark owned by Intel, and with Intel granting AMD rights to market the AMD K6 MMX processor.
• In 2005, following an investigation, the Japan Federal Trade Commission found Intel guilty on a number of violations. On June 27, 2005, AMD won an antitrust suit against Intel in Japan, and on the same day, AMD filed a broad antitrust complaint against Intel in the U.S. Federal District Court in Delaware. The complaint alleges systematic use of secret rebates, special discounts, threats, and other means used by Intel to lock AMD processors out of the global market. Since the start of this action, The Court has issued subpoenas to major computer manufacturers including Dell, Microsoft, IBM, HP, Sony, and Toshiba.