2002

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History of AMD: 2002

“Real solutions for real customer problems that exist in the real world today.”
— AMD CEO Hector Ruiz

February: AMD forms personal Connectivity Solutions business unit with acquisition of Alchemy Semiconductor
March: AMD announces transition to .13 Micron Technology
April: AMD launches the AMD Alchemy™ Au1100™ processor
April: Hector Ruiz succeeds Jerry Sanders as CEO of AMD
May: AMD samples first MorroBit™ Flash memory device
October: AMD opens AMD Developer Center

Industry Perspective

For most of our customers, 2002 was a year of cautious turnaround. Consumer electronics sales grew, driven by sales of DVDs, digital recorders, and digital cameras. The personal and enterprise computing markets seemed to stabilize, however, economic uncertainty held many of our customers back.

Security, privacy, and safety remained key concerns. Web services and wireless technology became increasingly important, as companies looked for new ways to embrace and foster mobile computing and communications. Many began thinking beyond the PC to personal information appliances.

As signs of recovery emerged, IT professionals found themselves caught between rising expectations of their data center and budgets that were hammered out during the worst of the downturn. Server consolidation and virtualization became hot buttons, along with the idea of “edge computing” and the tempting possibility of shifting application server workload to systems on the “edge” of the network.

On the global playing field, the rapidly growing Asia-Pacific market eclipsed the America’s as the world’s largest market.

2002 was a watershed year for AMD, as many of our long-standing philosophies and the current market conditions synergized into tremendous opportunity. As Hector Ruiz assumed the role of CEO in mid-year, he ushered in the credo of “customer-centric innovation.” This concept crystallized everything that AMD has always stood for: innovation driven by real customer needs and never for its own sake.

As customers in the personal and business computing world sought higher performance, lower cost solutions to help revitalize their business, AMD stepped up. In March, we announced plans to adopt a new, higher quality material known as silicon-on-insulator (SOI) in AMD manufacturing facilities (known as fabs). We also announced plans to begin shipping AMD Athlon™ XP processors based on .13-micron technology. These process and manufacturing technology advances would equip AMD fabs to offer higher performance, lower power — yet also more cost-effective — processor solutions.

As technology trends unfolded in 2002, many customers entered the personal connectivity markets to take advantage of rising demand for non-PC Internet access. On February 6, we formed a new Personal Connectivity Solutions business unit to focus on providing high-performance, low-power microprocessors for all kinds of customer solutions that combine mobile computing and communications with Internet capabilities. By April, we were able to launch the AMD Alchemy™ Au1100™ processor, which offered an industry-leading combination of low power plus high performance and integration.

Throughout 2002 the world was mired in political upheaval and a sluggish economy, coupled with maturation in many technology markets. This shifting playing field demanded a new paradigm for success. On September 23, 2002, Hector Ruiz answered the call as he announced AMD's “connected business model” philosophy to the general public, saying “To be successful, we believe that semiconductor companies must build relationships with customers and partners that truly blur the lines… where the companies are connected and invested in each other's success.”

In October, we cemented this public point of view with several key announcements. First was the opening of The AMD Developer Center, a facility dedicated to helping our partners accelerate the development and validation process for their software and hardware products built on AMD technology. Through the Center, partners gain vital access to AMD code and development platform expertise, along our extensive validation resources.

Next, we announced the formation of a joint venture with the China Basic Education Software Company, Ltd. (CBE). The alliance, known as the Beijing CBE AMD Information Technology Company, Ltd., was formed to develop AMD technology-based PCs as powerful learning tools for educators and schoolchildren in China, the world's most important growth market.

Finally, we were thrilled to announce that AMD was selected to provide the processing power for a Cray supercomputing solution, which will support the National Nuclear Security Administration's Advanced Simulation and Computing program, or ASCI, which helps ensure the safety and reliability of the nation's nuclear weapons stockpile.