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Advanced Micro Devices

DIVERSIFICATION AND GLOBAL POSITION 3Advanced 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


By the end of 1999, AMD's Bangkok facility had already been certified. SOCIAL RESPONSIBILITYAMD has been committed to the communities in which it operates. The program is disseminated from the main team to all AMD's local sites. At the same time, the Dresden water recycling plant recycled 20% of the consumed water (AMD 1999, 10). Therefore, in the year 2000 Fujitsu converted several of its own plants to serve strictly as factories for the joint venture. Some of the most important contributions done in 1999 directly by the AMD headquarters were; first, a cash gift of one percent of pretax profits to nonprofit agencies and schools that serve the communities where AMD operates and second, $1 million to the Taiwanese government because of the September 21st earthquake. Then, local sites apply this information and provide different services to the stakeholders surrounding each site (AMD 1999, 1). AMD operates in four continents, so its work force is a mix of people, cultures and customs. For example, in January 1994, AMD and Compaq Computers Corp. Siemens is now buying flash-memory chips from both FASB and Intel (Accord is set. AMD also cares about employee morale and respect for individuals as well as individual's values. The mix of cultures also facilitates the international communication between AMD's locations, suppliers and customers. Moreover, AMD has been a good neighbor to the communities in which it functions, satisfying many stakeholders' desires. AMD's positive overall performance assures the company a bright path for future growth in the global economy.

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