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AMD

DIVERSIFICATION AND GLOBAL POSITION 3

Advanced Micro Devices, Inc. is ranked as the as the world's second largest PC chipmaker with a market share of just 17%, far behind Intel Corp. with 81% of the market (Buckman and Williams 2001, 1). However, in 2000 AMD's sales jumped 63% to $4.6 billion, producing $983 million in net income and its first profitable year since 1995 (Streetwalker 2001, 1).

AMD owns engineering, manufacturing, warehousing and administrative facilities where it produces not only PC chips but also microprocessors, memory circuits, logic circuits, flash memory devices, telecommunication products and embedded processors (Moody's 2000, 2520). The company's headquarters and research and development site are located in Sunnyvale, CA, while the wafer manufacturing plants are located in Austin, TX and Dresden, Germany. The test and assembly facilities are located in Bangkok, Thailan


As a technological sector firm, AMD is also deeply involved with the latest technology. For example, the company's internal website provides employees plenty of information not only for learning purposes but also for safety purposes, such as radiation control, chemical issues, hazardous energy control and waste management issues. In each of the company's local sites, the firm uses the latest technology in both the production area and in the corporate offices.

The Environmental, Health, and Safety (EHS) program provides a safe work place for employees, protects the environment, prevents damage to property, enhances employee morale and assures compliance with applicable laws and regulations worldwide. The program is disseminated from the main team to all AMD's local sites. Then, local sites apply this information and provide different services to the stakeholders surrounding each site (AMD 1999, 1).

The company's consolidated global position produces a very interesting case. This paper will analyze AMD's international operations, competitors, alliances, legal problems, and its relationship with stakeholders. In addition, the recent meltdown in high-tech stocks and the reduction of PC sales are provoking the semiconductor industry to diversify its business. This analysis will consider the consequences of this problem and the resulting changes in AMD's corporate business strategies.

Because of these and many other environmental accomplishments, AMD's local sites have received several awards. The state of California has awarded AMD headquarters for its commitment to solid waste reduction and recycling programs for five consecutive years. The city of Austin, TX awarded AMD for its excellent compliance with wastewater treatment regulations.

· At present, AMD is looking for a partner to build in 2004 its first 300-mm factory costing about $4 billion (Advanced Micro is seeking... 2001, 1).



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Approximate Word count = 2764
Approximate Pages = 11 (250 words per page double spaced)


  

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