Advanced Micro Devices, Inc. (AMD)
Advanced Micro Devices, Inc. (AMD) is a prominent semiconductor and technology company founded in 1969 and headquartered in Sunnyvale, California. AMD specializes in manufacturing microprocessors, graphics processing units (GPUs), and solid-state drives, catering to consumer, commercial, and professional markets. The company operates through two main segments: the Computing and Graphics section, which is well-known for its microprocessors, and the Enterprise, Embedded, and Semi-Custom segment, which serves various industries, including gaming and medical devices.
Despite being a significant player in the tech industry, AMD holds a smaller market share compared to its main competitor, Intel. The company has a history of innovation and expansion, including crucial acquisitions like the Canadian graphics company ATI and the development of original chip designs. Throughout its history, AMD has faced financial challenges but has consistently sought to improve its standing through new product lines and strategic partnerships, including efforts in blockchain gaming.
AMD emphasizes corporate responsibility and environmental sustainability, striving to create high-quality technology while fostering a respectful work environment. With around 25,000 employees worldwide, AMD remains committed to reducing energy consumption in its products and engaging in community service initiatives.
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Advanced Micro Devices, Inc. (AMD)
- Date Founded: 1969
- Industry: Technology
- Corporate Headquarters: Sunnyvale, California
- Type: Public
Overview
Advanced Micro Devices, Inc. (AMD) is a publicly traded semiconductor and technology producer based in Sunnyvale, California. The company was founded in 1969, and in the twenty-first century, the company sells various products, including microprocessors, graphics processing units (GPUs), smart network interface cards (SmartNICs), artificial intelligence (AI) accelerators, Field-programmable gate arrays (FPGAs), and solid-state drives, as well as devices for personal computing, cloud storage, gaming, and more.
AMD sells goods for consumer, commercial, and professional markets. The company has two main sections: the Computing and Graphics section and the Enterprise, Embedded, and Semi-Custom section. The Computing and Graphics section creates products such as microprocessors. This section of the company is the part for which the company is best known. The Enterprise, Embedded, and Semi-Custom section creates goods for various industries, and these products include hardware for casino gaming, interactive signs, and medical devices. The company also sells chips that include integrated graphics information. These products provide high-quality graphics, but they also cost less than two separate components.
One of AMD’s best-known product lines is the microprocessors used in personal computers. AMD and the company Intel are competitors in this field. Intel is the best-known company in the field, but AMD is the second best-known, though it has a much smaller market share than Intel.
AMD employs over 25,000 people in offices throughout North America, Europe, the Middle East, South America, Asia, and Africa. In addition to the corporate headquarters in Santa Clara, California, AMD has corporate offices in many locations throughout the world.
History
AMD cofounder Jerry Sanders worked for Motorola and Fairchild Semiconductor in the 1960s. Sanders, however, did not like working for other people, so he decided to create his own technology company. The resulting company, AMD, was incorporated on May 1, 1969. Sanders was just thirty-three years old at the time, and he started the company with David John Carey.
AMD began supplying computer parts to companies that did not want to rely only on Intel. Intel licensed designs of some of its products to AMD so AMD could produce them for various companies. In the 1980s, however, Intel stopped allowing AMD to make its products. At that time, AMD began creating its own products. The first products the company created were very similar to products Intel made, but AMD generally sold their chips at lower prices. Because it took AMD a long time to make products that were similar to Intel’s, some experts believed the company would fail. Nevertheless, AMD continued and produced an original chip—one not based on Intel’s designs—in 1996.
The company then acquired another small microchip manufacturer, NexGen. This acquisition was important for AMD, but it also cost the company a great deal of money. As the company became more successful, it became well-known for spending large amounts of money. Some former employees said that the company's culture during the early 2000s encouraged employees to spend their own money to portray a certain image of the company.
In the early 2000s, AMD created a number of new products that made it stand out in the market. Nevertheless, Intel was also innovating. Intel’s Core line of products and new marketing campaign made the company popular again. At the same time, Intel was reemerging as a leader in the market, AMD was focused on a number of different products, and it spent a great deal of money on product research and acquiring the Canadian graphics company ATI. By the mid-2000s, AMD was struggling, as it spent too much money and was not selling enough products.
In the 2000s, AMD filed an antitrust suit against Intel. The two companies finally settled the suit, with Intel paying AMD more than $1 billion. Despite this money from Intel, AMD had financial difficulties. AMD’s financial struggle continued into the 2010s as it continued to lose its already small market share. In 2013, AMD sold its corporate offices in Texas and began leasing the building to save money. In the mid-2010s, however, AMD again tried to make its mark in the technology field with a new line of processors for laptops. In 2019, the company partnered with Robot Cache and ULTRA and joined the Blockchain Game Alliance as they began to develop the next generation of blockchain-powered gaming platforms. In the 2020s, AMD continued to grow and acquired several companies, such as the artificial intelligence software startup Nod.AI in 2023 and the semiconductor company Xilinx in 2022. The company continued investing in artificial intelligence (AI) technology and Silo AI in 2024.
Impact
AMD is one of the best-known microchip makers in the world, even though its market share is just a fraction of Intel’s. The company sells a number of products, and its chips can be found in PCs, laptops, handheld devices, and more. The company also is well known for its GPUs and related products.
AMD has also made an impact because of its corporate culture. One of AMD’s goals as a company is to improve the world through technology. The company believes in corporate responsibility, and it views this responsibility as one of its core values. The company has sustainability and environmentally conscious goals to guide its decisions as a responsible corporate citizen. The first goal is to create high-quality products while treating its employees with respect. It also aims to produce important technology that has as little impact on the environment as possible. Another of the company’s goals is to be a desirable employer that attracts and retains talent. The company is also committed to creating products that require less energy, and it was awarded an Environmental Leader Product & Project Award for its efforts. The company encourages employees to contribute to environmental conservation efforts and participate in local communities through volunteering and donating.
Bibliography
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