It is interesting to follow the evolution of AMD, the second global manufacturer of processors; the company had revenue of 4.6 billion dollars in 2001. Just a year after Intel, May 1, 1969, the company was founded by Jerry Sanders AMD and seven other members. Their desire was to build a strong company of semiconductors and integrated circuits (especially telecommunications and electronic memories) for different market segments. Seat dining room was originally one of the co-founders John Carey, but soon moved into two rooms of a company in Santa Clara. By September, AMD has collected money to start manufacturing products and to move the first permanent, in Thompson Place, Sunnyvale.
AMD’s early year was often the second manufacturer of devices licensed from other companies slowly began to emerge new projects, their design integrated circuits, such as the world’s first math coprocessor, an add-on for the best -seller at that time, Zilog Z-80. Towards the end of the fifth year, AMD had 1,500 employees making more than 200 different products, some of them patented, and bringing an income of nearly 26.5 million dollars. Over the next five years, AMD has had a recession, was forced to require 44 working hours per week employees.
In 1976, AMD and Intel have signed the first agreement for the exchange of patents, resulting in AMD has become the second manufacturer Intel. The agreement was renewed in 1981 and then completed each year. It can be said has been a long collaboration for both partners, AMD producing widely Intel 8088 and 286. But after massive sales of these chips, Intel has become so rich that has allowed construction on their own processors more factories soon no longer need to work with AMD. Thus, since 386, were frozen relations with secondary producers such as AMD, NEC and Harris, which began to appear after the first trials. Intel wanted to cancel the second patent exchange agreement, arguing that it is strictly related to 8086/8088 and 286, while AMD claimed that the agreement is valid for all x86 processors.
In 1978 the company reached 100 million U.S. dollars in 1979 revenue and begins production in Austin, Texas. AMD faces in 1981 included the Space Shuttle Columbia. In 1984, AMD is the top “100 best companies to work in the U.S. worth” and in 1985 into the top 500 richest companies. Also in 1985 the new factory “Fab14″ and “Fab15″ start business in Austin. In October 1986, due to a prolonged recession, AMD’s restructuring plan first announced over a decade. In 1987 AMD absorbed company Monolith Memories.
Legal disputes with Intel first began in 1987. In March 1991, after years of lawsuits, introduces AMD processor Am386 (a copy of the Intel 386), breaking the monopoly of Intel, selling a million copies in only six months. Am386 was a milestone for the PC market, is a product very affordable price. Breaking the existing monopoly to date has led to cheaper PCs with several hundred dollars in just a few months, AMD 386DX-40 became one of the best processors ever sold. The money made of this “coup”, AMD launched the construction of the largest factories of processors at that time, Fab25, Texas. Because of this great leap in development, the scenario was repeated in 1993 with the Am486. In March 1994 confirmed the legal rights of AMD microcode on Intel’s 287 math. Being made unable to copy Pentium, AMD had to make on their own next generation of processors, K5, introducing more radical innovations in design. But despite the very advanced technology, the K5 was a shift in production disaster, was postponed so many times that the occurrence had already exceeded its competition, Intel Pentium and Cyrix 6×86. Semi-failure of K5 was amplified by the production end of the previous generation (AMD 5×86 – 486 led to a limit), so severe financial losses questioned Texas company’s ability to resist further stage processor manufacturers.
With a controversial move (at that time many observers have said it’s crazy to be followed by total failure), AMD bought NexGen, a manufacturer of processors minor, which had no more value than a x86 RISC processor complex design and a team of value. With a last desperate infusions of capital derived from other divisions AMD purchased NexGen K6 gave birth line, which was a considerable success. However, K6 could have an even greater success if AMD is not hitting the same 0.35 micron process technology on inefficient, which caused the loss of K5′s ace. Thus, K6 could not be produced on demand so far for one year, until it moved to a new technology to 0.25 micron, at which time a K6-2 was launched. Even if Cyrix and IDT had a say, K6-2 was the one who cut Intel’s market rates “retail”, from 85% to 54% in autumn 1998. Millions of K6-2 K6-III sold made possible the design and production of next generation, AMD Athlon, and raising a second own factories in Dresden, Germany. It is perhaps ironic that the imposition of the Athlon has been facilitated by technological problems of Intel’s opponent, the loader having more processors on 0.25 micron production at high frequency and perfecting new technologies. Athlon 0.18 have the highest frequency, the better integer performance, the most powerful mathematical coprocessor and a lower price, absolutely dominating all Intel processors by the end of 2001 when the Pentium 4 was able to emulate him, based on a frequency of 400 MHz minimum advance. Currently, AMD is still the last remaining barrier against monopoly in the PC processor world.
