Professional Documents
Culture Documents
Introduction
1.1 Intel
Being the world’s largest
semiconductor chip manufacturer
by the revenue generated, Intel is
rightfully the inventor of x86 series
of microprocessor which is found in
most of the PCs we use. It was
found on July 18, 1968, as
Integrated Electronics Corporation
(though it is a common
misconception that “Intel” is from
the world Intelligence) and is
located in Santa Clara, California,
USA. It also makes motherboards,
chipsets, integrated circuits, flash
Intel Headquarters (USA)
memory, graphic chips, network
interface controllers, embedded controllers and processors and other devices related to
computation and communication. Founded by semiconductor pioneers Robert Noyce and
Gordon Moore, and widely associated with the executive leadership and vision of Andrew
Grove, Intel combines advanced chip design capability with a leading-edge
manufacturing capability. Originally known primarily to engineers and technologists,
Intel's successful "Intel Inside" advertising campaign of the 1990s made it and its
Pentium processor household names. Intel was an early developer of SRAM and DRAM
memory chips, and this represented the majority of its business until the early 1980s.
While Intel created the first commercial microprocessor chip in 1971, it was not until the
success of the personal computer (PC) that this became their primary business. During
the 1990s, Intel invested heavily in new microprocessor designs fostering the rapid
growth of the PC industry. During this period Intel was the dominant supplier for
processor units and was known for controversial tactics in defense of its position in the
market, particularly against its biggest rival in x86 architecture i.e. AMD and as a
struggle with the Microsoft for control over the direction of the PC industry. According to
the 2009 ranking, Intel has improved from position 27 to 23 in world’s 100 most powerful
brands published by Millward Brown Optimor. Intel is also doing research in electrical
transmission and generation and semiconductors industry.
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1.2 AMD
AMD (Advanced Micro Devices,
Inc.), an American multinational
semiconductor company located at
Sunnyvale, California, produces
computer processors and related
technologies for commercial and
consumer markets. Some of the
main products are
microprocessors, motherboards,
chipsets, graphic processors,
embedded processors, personal
computers and workstations, and
processors of handheld devices, AMD Headquarters (USA)
digital TV, automobiles, game
consoles and other applications.
AMD is the second largest competitor of Intel based on the x86 architecture and is third
largest GPU supplier after Intel and Nvidia. It has 21% shares in Spansion, a supplier of
non-volatile flash memory. According to 2007 ranking, AMD was placed 11th in the list in
semiconductor industry based on the revenue generated.
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1.4 Company Profile
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1.5 History
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Intel AMD
Intel was founded in 1968 by Gordon E. Advanced Micro Devices was founded on
Moore (of "Moore's Law" fame, a May 1, 1969, by a group of former
chemist and physicist) and Robert executives from Fairchild
Noyce (a physicist and co-inventor of Semiconductor, including Jerry Sanders
the integrated circuit) when they left III, Ed Turney, John Carey, Sven
Fairchild Semiconductor. Simonsen, Jack Gifford and three
Intel's business grew during the 1970s members from Gifford's team, Frank
as it expanded and improved its Botte, Jim Giles, and Larry Stenger.
manufacturing processes and produced The company began as a producer of
a wider range of products, still logic chips, then entered the RAM chip
dominated by various memory devices. business in 1975.
Intel created the first commercially That same year, it introduced a reverse-
available microprocessor (Intel 4004) in engineered clone of the Intel 8080
1971 and one of the first microprocessor.
microcomputers in 1972. It had some success in the mid-1980s
By the early 1980s its business was with the AMD7910 and AMD7911 "World
dominated by dynamic random access Chip" FSK modem, one of the first
memory chips. multistandard devices that covered both
Increased competition from Japanese Bell and CCITT tones at up to 1200 baud
semiconductor manufacturers had, by half duplex or 300/300 full duplex.
1983, dramatically reduced the AMD decided to switch gears and
profitability of this market. concentrate solely on Intel-compatible
the sudden success of the IBM personal microprocessors and flash memory. This
computer convinced then-CEO Grove to put them in direct competition with Intel
shift the company's focus to for x86 compatible processors and their
microprocessors, so by the end of the flash memory secondary markets.
1980s this decision had proven AMD announced a merger with ATI
successful. Technologies on July 24, 2006. AMD
By end of 90s, its line of Pentium paid $4.3 billion in cash and 58
processors had become a household million shares of its stock for a total
name.
of US$5.4 billion.
After 2000, growth in demand for high- It was reported in December 2006
end microprocessors slowed.
Competitors, notably AMD.
that AMD, along with its main rival in
the graphics industry Nvidia, received
In 2006, Intel produced P6 and Netburst
products with reduced die size (65nm). subpoenas from the Justice
A year later it unveiled its Core micro Department regarding possible
architecture to widespread critical antitrust violations in the graphics
acclaim. card industry, including the act of
On June 27, 2006, the sale of Intel's fixing prices.
XScale assets was announced. In October 2008, AMD announced
plans to spin off manufacturing
operations in the form of a
multibillion-dollar joint venture with
Advanced Technology Investment
Co., an investment company formed
by the government of Abu Dhabi.
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1.6 General Company Information
Intel AMD
Vision Vision
Mission Mission
Delight our customers, employees, Lead through innovative, customer-
and shareholders by relentlessly centric solutions that empower
delivering the platform and businesses, enhance the digital
technology advancements that lifestyle, and accelerate global
become essential to the way we digital inclusion.
work and live.
Values Values
Customer orientation Respect for People
Results orientation Integrity
Risk taking Our Customers' Success
Great place to work Customer-Centric Innovation
Quality Initiative and Accountability
Discipline Fair and Open Competition
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1.7 SWOT Analysis
1.7.1 Intel
Strengths:
> The largest company in the Semiconductor Industry and 83900 (2008) employees.
> Huge Profit: Revenue $37,8 billion(2008) and market capitalization $77,14 billion.
> Intel’s capacity to produce high speed microprocessors.
> Has efficient money and marketing muscle.
> Favorable investment strategy in Samsung and Micron Technology.
> Intel is a lot innovative and always has new successful ideas.
> Intel got a lot of loyal customers and hence it has market share leadership.
> It has strong brand equity and strong management team.
Weaknesses:
> Laid off 10500 employees (2006) and will lay off 1800 employees also shutting down
some facilities (Intel Philippines, Cambridge Intel Laboratory).
> Doesn’t produce very high end graphic chips or attractive enough for gamers.
> Flaws in PC boards of Rambus.
> Expensive retail pricing is also a weakness.
Opportunities:
Threats:
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1.7.2 AMD
Strengths:
• The second largest company in the semiconductor industry and third largest company
in the graphic industry
• 15,653(2008) Employees.
• The company revenue: $6,013 billion.
• Cheaper product than Intel
• Many facilities and research and developing centers
• AMD Athlon 64x2 microprocessor.
Weaknesses:
• AMD has a bit bad market reputation compared to its rival Intel.
• AMD notebook chips are not up to the mark.
• Intel, Microsoft association.
• Decreasing annual revenue.
Opportunities:
Threats:
2. Basic Comparison
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2.1.4 Annual Financial for AMD
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2.2 Company Products
Some of the microprocessors of both the companies are shown and compared below.
Here’s a list of some of Intel’s processors:
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And a list of AMD’s processors is given below:
2.2.1 Comparison
2.2.2 Conclusions
These two charts only show some of the processors of both companies and are not the
latest models. The purpose of this is to show how Intel and AMD are managing to put
various features on their respective processors and what are the good points and what
are the bad points that we can easily find out. Now as obvious, Intel has better
fabrication process values than AMD and power management too. And if the prices are
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seen and the final comparison chart is looked upon, it’s clear that AMD is not delivering
the same features as Intel can but it doesn’t mean AMD always is like that. AMD is doing
much better if Graphics Processing Units are compared.
2.2.3 Benchmarking
Now to test the processors, a game “The Elder Scrolls IV: Oblivion” is used as
benchmarking source. The benchmarks are based upon the frame per seconds recorded
with FRAPS utility in the game for a specific point and time and tested for AMD’s as well
as Intel’s processors.
And the result is pretty obvious for this game as shown below. But it’s not same for all
games.
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3. Corporate Responsibility
Corporate social responsibility (CSR), a.k.a. corporate responsibility, is a form of
corporate self-regulation integrated into a business model. Ideally, CSR policy would
function as a built-in, self-regulating mechanism whereby business would monitor and
ensure its adherence to law, ethical standards, and international norms. Business would
embrace responsibility for the impact of their activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere.
Furthermore, business would proactively promote the public interest by encouraging
community growth and development, and voluntarily eliminating practices that harm the
public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public
interest into corporate decision-making, and the honoring of a triple bottom line: People,
Planet, and Profit.
3.1 Intel
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As set by a formal charter, the Corporate Governance and Nominating Committee of
Board of Directors has ultimate oversight of Intel’s corporate responsibility performance,
and CEO sets “tone at the top” and strategy. A Corporate Responsibility Management
Review Committee, led by Corporate Responsibility Group, manages efforts across the
company. Other organizations, including those represented in this graphic, own specific
areas of Intel’s performance.
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3.1.2 Ethics and Governance
Intel Says: “Our formal Code of Conduct, corporate governance structure, and Ethics and
Compliance Program help ensure that we maintain the highest standards of integrity in
everything we do.”
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Since 2007, Intel has been a member of the Chicago Climate Exchange, North
America’s only cap and trade system for six greenhouse gases.
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3.1.3.4 2008 performance summary
3.2 AMD
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3.2.1.1 Risk Management
Approach
AMD has an obligation to its stakeholders to understand and effectively and deliberately
manage its business risks to ensure that it will continue to compete and succeed in the
marketplace. AMD accomplish this through a systematic approach to managing risk of
loss, disruption or interruption of mission critical activities that are aligned with its
strategic business initiatives. AMD’s business resilience and preparation is routinely
reviewed and its management plans updated accordingly.
Approach
As a global company, AMD believe corporate responsibility includes being an informed,
active participant in the development of public policies that affect its business and its
industry in the countries and communities in which it operate. Good public policy begins
with diverse and committed stakeholders participating in open and transparent
proceedings to carefully examine issues and bring different perspectives and
experiences to promote effective solutions.
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3.2.1.3 Product Innovation
Approach
The lifeblood of a technology company is the technology and product pipeline.
The extremely high cost of leading edge technology development makes it necessary for
AMD and others to seek development partners to leverage resources and expertise. AMD
realize that the value derived from research and development investments generally
improves with participation from strategic partners, and it support the nurturing of long-
term partnerships with its customers, other technology companies, and academia.
Approach
As a global business, a wide range of stakeholders affect and are affected by AMD’s
operations and products. At AMD, people believe in the spirit of true collaboration. In this
respect, AMD strive to maintain open and frequent communications with the people,
businesses, and organizations that help it achieve success in everything it do. AMD
believe regular dialogue with stakeholders is mutually beneficial, providing perspectives
and interests that help inform its decisions, shape its programs, and influence its
collaborations.
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on providing customers with the innovative products they desire, supported by excellent
customer service and uncompromising quality. Customer loyalty and satisfaction are key
indicators of AMD’s focused customer-centric approach to business. AMD conduct
customer surveys twice per year to understand the key drivers and opportunities for
continuous improvement relative to customer satisfaction and loyalty. AMD use survey
data to provide regional stakeholders, account teams, and business units with an overall
understanding of customers’ concerns and to prioritize activities that improve the
customer experience. AMD’s surveys are global and are available in multiple languages
to facilitate understanding and enhance responsiveness. Results of these surveys are
business confidential.
Approach
AMD’s integrated approach to supply chain management ensures alignment with its
corporate strategy to deliver high quality products and services while maintaining and
enhancing long-term, mutually beneficial and ethical supplier relationships. AMD are
committed to the support of industry-wide efforts to integrate social, environmental, and
ethical responsibilities into the electronics industry supply chain practices. As a global
manufacturer, AMD want to ensure that working conditions in the electronics industry
supply chain are safe, that workers are treated with respect and dignity, and that
manufacturing processes are environmentally responsible.
Approach
An extension of the company’s customer-centric focus is the belief that customers
should experience excellence when designing-in, manufacturing with, or supporting
systems that include AMD products.
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systems, and final testing to ensure operational consistency, efficiency, and the ability to
meet customer requirements. World Class Supplier,
World Class Manufacturing, customer quality, and other quality processes drive
continuous improvement in all aspects related to developing, manufacturing, and
supporting products. In 2008, all AMD manufacturing sites were ISO 9001:2000
registered; and these registrations have been maintained over time.
Avenue
AMD believes that the integrity of an organization begins with every employee’s personal
and professional commitment to a set of core values that guides actions and decision-
making. AMD are committed to the highest standards of ethics and integrity in all
aspects of its business, and it continue to act appropriately to maintain the trust of its
stakeholders.
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3.2.3 Environment
It is AMD’s commitment to customers, partners, communities and employees to pursue
performance-per watt leadership, energy efficiency, and environmental responsibility in
its products and operations.
3.2.3.1 Electricity
Conservation
Most of AMD’s energy
use is in the form of
electricity, with
a smaller portion
coming from onsite fuel
consumption,
steam, and cooling and
heating water lines.
Because both fossil fuel
extraction and
the generation of
electricity
impact the
environment,
AMD continually look
for opportunities to
decrease the amount of electricity consumed, and use electricity from more efficient and
renewable sources.
3.2.3.3
Hazardous
Waste
Reduction
AMD’s
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3.2.3.4 Air Emissions
AMD’s manufacturing operations result in volatile organic compounds (VOC) and
corrosive emissions. Emission control technologies such as thermal oxidation and
scrubbers are used to treat permitted emissions.
4. Conclusions
As obvious from above analysis and comparison, it’s clear that currently Intel is leading the
market and has
prominent
position. Still
AMD has got
opportunities
which it should avail
and should take
more initiatives to
make a better
position in
microprocessor industry. AMD need more innovation. As clear from the past, when it
became a tough competitor to Intel and was even going better in the market but it wasn’t
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able to keep its position and when Intel introduced its CoreTM technologies, which received
critical acclaim worldwide, that made AMD lose the market share though it also introduced
its multi-core processors but the market was then in the hands of Intel already.
AMD still has another better weapon which it can use to get its position back in the market
and that is ATI graphics chips. AMD acquired ATI lately and it won’t be wrong saying that
ATI is one of the best and effective graphics chip producer in the world. So if AMD can give
more attention to ATI along with its own CPU business, it can surely make a better position
in the semiconductor market. Intel is for sure the biggest GPU producer in the world but
that are not mostly gamming oriented GPUs. Nvidia and ATI are two main rivals and
currently ATI is giving better performance and for similar specification, ATI cards are
cheaper. So if ATI scores well, AMD scores well. That’s how AMD is and can improve its
market shares.
In a nutshell, putting aside the semiconductor business, in x86 architecture both Intel and
AMD are doing well and there are some ups and downs in their respective businesses but
both of them are surely the rivals though as it is clear nowadays that Intel is going much
better than AMD, still AMD has a chance to get its position back or at least improve to a
great extent by implementing the multi-core technologies (4 to 8 cores mostly) and also by
optimizing and improving the CPU chip size. And having the advantage of better GPU
technology of ATI, AMD can improve its market position despite the fact that Intel is the
largest GPU manufacturer in the world by quantity.
5.
Reference
1. http://en.wikipedia.org/wiki/AMD [1.2, 1.4, 1.5]*
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2. http://en.wikipedia.org/wiki/Intel_Corporation [1.1, 1.4, 1.5]
3. http://www.intel.com/intel/company/corp1.htm [1.6]
4. http://www.intel.com/cd/corporate/europe/emea/eng/intel/vision/322363.
htm [1.6]
5. http://www.amd.com/us-
en/Corporate/AboutAMD/0,,51_52_484_486,00.html [1.6]
6. http://ja-jp.facebook.com/topic.php?uid=47805027932&topic=8531
[1.7.1, 1.7.2]
7. http://www.wikiswot.com/SWOT/4_User_Generated/Intel.html [1.7.1,
1.7.2]
8. http://finance.yahoo.com/q?s=Intc [2.1.2]
9. http://www.marketwatch.com/investing/stock/INTC/financials [2.1.3]
10.http://www.marketwatch.com/investing/stock/AMD/financials [2.1.4]
11.http://techreport.com/articles.x/12091/1 [2.2, 2.2.1]
12.http://techreport.com/articles.x/12091/3 [2.2.3]
13.http://download.intel.com/intel/cr/gcr/pdf/Intel_CSR_Report_2008.pdf
[3.1]
14.http://www.amd.com/us/Documents/amd_Corporate_Responsibility_Repo
rt.pdf [3.2]
15.http://www.scribd.com [1.7]
16.http://www.images.google.com [2.1.1, 4]
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