AMD Chairman Jerry Sanders Discusses Accelerating Recovery of Semiconductor Industry through "True Innovation" at Semico Summit 2003
Sanders Also Receives Bellwether Award
SUNNYVALE, CA --
AMD (NYSE: AMD) Founder and Chairman Jerry Sanders delivered a keynote address at Semico Research’s annual summit this morning, stressing that the adoption of a customer-centric approach to technology development — listening to customers and delivering truly innovative solutions based on their needs — is essential to help increase information technology spending in the enterprise. Sanders defined “True Innovation” as innovation which makes the greatest possible technology relevant and available to the widest possible audience.
In addition to his keynote, Sanders was honored by Semico Research with its Bellwether Award. The Bellwether Award recognizes semiconductor industry leaders for their unique contribution to the advancement of their company’s products and success. The award was presented to Sanders by Walden Rhines, Chairman and CEO of Mentor Graphics, the recipient of the award at the 2002 Summit.
“I am honored to be recognized by Semico Research for a lifetime of passionate dedication to an industry that truly has changed the way people work and live all over the world,” said Sanders. “During the course of my career, the semiconductor industry has endured its peaks and valleys. However, one thing that has remained a constant is that truly innovative technology has always been the catalyst for our industry’s growth. The great challenge our industry faces in maintaining the 10 to 12 percent compound annual growth rate I predict is not discovering a new phenomenon that will ignite our growth, but instead preserving the very foundation of True Innovation: free and open competition.”
Sanders focused his remarks on how the semiconductor industry might accelerate its own recovery by strategically encouraging IT spending in the enterprise sector. “Enterprise customers are not saying they do not need new technology. They are not claiming that technology is not a priority. They are saying that for the first time since the start of the technology boom 10 years ago, spending is tight and there will be a much more disciplined look at which technology can best deliver on its promise while existing in today’s economic realities. To get the enterprise buying again, we should develop technology with radical and relevant advances in functionality at dramatically lower costs.”
Sanders pointed to the divergent choices available in 64-bit computing as a prime example of how the new spending criteria of the enterprise may impact semiconductor industry growth. “On April 22nd, AMD is scheduled to launch a 64-bit technology that lets the customer ― not the supplier ― decide just which machines and how many people need 64-bit power.”
Sanders urged Semico Summit attendees to respond to the economic crisis facing enterprise customers by following the principles of True Innovation, even if it threatens the very business models that made the semiconductor industry rich during the tech boom. “The engine for growth in the semiconductor industry has always been offering greater functionality at lower cost. We must get back to the roots that made our industry one of the most important in the world. We must get back to competing openly and fairly by creating breakthrough technology that is available to the widest possible audience.”
Sanders’ presentation is available in AMD’s virtual pressroom at www.amd.com/virtualpress/speeches
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor’s 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.7 billion in 2002. (NYSE: AMD).
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