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We're that other chip maker Advanced Micro Devices (AMD) has become the world's largest supplier of integrated circuits (ICs) for personal and networked computers and the public communications infrastructure. With a 10 percent share of the semiconductor market, AMD is a David of the industry looking to knock off the Goliath of semiconductors, Intel. The company began in 1969 when marketing whiz Jerry Sanders was fired from Fairchild Camera & Instrument. By putting his marketing know-how to work, Sanders was able to overcome a capital shortage and a lack of management experience to launch his company and go public in 1972. Cash infusions from Siemens and Intel in 1977 and 1982, respectively, helped AMD grow quickly alongside increasing demand for semiconductors during the mid-1980s. Current operations Today, AMD's activities include product design, process-technology development, and wafer-fabrication (making microchips). Its main development sites are in Austin, Texas, while its headquarters reside in Sunnyvale, California. The company opened a state-of-the-art, $1.9 billion facility in Dresden in 1999, which began contributing to its earnings in 2000. (In fact, AMD has a greater investment in manufacturing plants than any other microprocessor maker, save Intel.) It also has a joint venture factory with Fujitsu in Aizu-Wakamatsu, Japan. Most testing and assembling occurs at the company's facilities in Penang, Malaysia and Bangkok, Thailand. AMD has also begun construction on a manufacturing facility in Suzhou, China. Speed of lightning, roar of thunder... Now may be the underdog's chance to chip away at Intel's lead. AMD's microprocessors, like the K6-2 (with 3DNow! technology) and the K7 compare favorably with Intel's Pentium chip, but sell for less. 3DNow! speeds up 3D graphics and represents an advance over Intel tech. The Duron line from AMD is shipping in different speeds ranging from 600 to 700 MHz, in order to compete with Intel's low-priced Celeron processors. Compaq, Hewlett-Packard, IBM, Gateway, and Acer are all using AMD chips in certain models, and AMD is continually improving its position supplying chips for the sub-$1,000 PC market. Despite its mammoth 80 percent market share, Intel has reacted furiously to any and all challenges from its small competitor. Intel has cut prices on its lower-powered Celerons to compete directly with AMD. Intel's 500 MHz processor now goes for less than $200. It's no wonder, because sub-$1,000 PCs, which require cheap chips, are an increasingly important market segment. According to researchers PC Data, 58.5 percent of the retail market in November 1999 consisted of sub-$1,000 PCs. AMD is making substantial headway breaking into the higher-end market. Spurred to quicker production by Intel's continuing dominance, AMD introduced an 850 MHz Athlon processor while Intel's Pentium III was at 800 MHz. AMD scored a big win over Intel when it introduced a 1 GHz chip two days before its competitor. The Athlon chips also have higher capacity caches than Intel's current offerings. The company plans to have a 1.5 GHz processor by January 2001. Do AMD's chips stack up? It remains to be seen whether AMD can cut into the market share of its much larger competitor. Company officials are optimistic, a feeling that has been justified by AMD's success in beating Intel to the 1GHz processor. Signs like these have led the company to set some lofty goals for itself: AMD is aiming to increase its PC market share to 30 percent. To achieve that kind of presence, however, it is likely that AMD would need to ace out nearly all its competitors (except for Intel!) Unlucky breaks The price war with Intel and an ill-timed K6 manufacturing error severely cut into AMD's profits in the first quarter of 1999. Still, AMD managed to sell more chips than Intel for the first time in January of that year, and top hardware makers including Gateway and Toshiba announced that they would use the AMD's K6-2 over Intel's Pentium. But coinciding with this good news, AMD's president and chief operating officer S. Atiq Raza unexpectedly resigned in July 1999. Raza had been considered the heir apparent to CEO Jerry Sanders. The company took another blow in two months later when Gateway announced it would phase out AMD chips, opting to use Intel processors instead. This move was reversed early in 2000 though, when Intel was unable to supply Gateway with enough chips; Gateway soon became one of the biggest customers of Athlon chips.
According to insiders, the company finds new employees through a wide variety of channels. "Recruiting at AMD is done through campus interviews, through job fairs conducted at AMD and elsewhere, and through resumes sent directly through the placement office," instructs one. Applicants who get an interview may have difficulty figuring out what to expect ahead of time. "The nature of the interview depends on various factors," says a source, "but in general it is 'medium.' [That is], I have seen both more relaxed and more stressful situations." Those who interview on campus "may get invited for an interview at our site, and that's when you'll be interviewed by about seven or eight people." It is true that "there are many rounds and lots of technical questions if you are applying for a technical position." On the other hand, interviewers "don't try to deliberately stress interviewees out simply in order to gauge their reactions." Prospects for landing a job appear bright, explains one employee simply: "If you are smart and talented, we certainly want and need you." AMD accepts resumes through regular mail, fax, and e-mail - and also through an on-line form available at its web site. The site also contains job listings.
Mixed satisfaction reviews Although AMD is frequently cited in the book series The 100 Best Companies to Work For In America, insider reviews are somewhat mixed overall. Some AMD insiders say that it "is one of the best companies that [they] have ever worked for," citing the "great benefits" and the "chance to work with cutting-edge technology" as sources for such enthusiasm. On the other hand, another source says, "there have been quite a few people [who were] dissatisfied with their jobs in the last year and have left our group." "One left because she could not get along with a certain individual who also left," according to that insider. Part of the reason for the varied responses is that AMD employees are subject to the vicissitudes of their work. "It's a bit of a roller-coaster financially, but that's the nature of the industry," according to one. "When times are good, the perks are good." This up-and-down nature is especially true when it comes to work hours and intensity. "I've put in 17-hour days and I've put in five-hour days," says one employee. Another says he spent most of a year working 9 to 5, but as his group approaches a target date, "sometimes I am up 'til one or two." However, most employees say their bosses are flexible with their hours, as long as they get their work done. A people's company Although a few employees describe AMD as "a little frantic," employees generally gave good reviews of their work atmosphere. "It's less stressful than many other high-tech companies I am familiar with," says one source. "Although we are in a competitive industry, I don't feel unduly pressured beyond what is reasonable." Another says his coworkers are "not workaholics." The "people are very committed to the job, [but] the work environment is very relaxed most of the time." One insider describes a "tight community that's very friendly." As far as bosses go, one AMDer says he's "proud" to report that "upper management really cares what its employees think." "We are viewed as individuals, rather than cogs in a machine," comments one content AMD resident. According to a source, "It seems that AMD places a lot more value on people than other companies do." The people-oriented atmosphere extends to the dress code, which is business casual to casual. Many report wearing jeans and t-shirts. "We dress very casual," says one. "Finance is the only department I know of who wear ties everyday." "Today I am wearing cowboy boots," says another. "Yee-haw." Harmonious environment The vast majority of those surveyed say AMD is a diverse company when it comes to women and ethnic minorities. Any variations on this theme are chalked up to the ways of the world itself, not AMD. "I have noticed that most of the senior executives - as with many Silicon Valley companies - are white males," says one insider. "As far as treatment of women and minorities, they have taken huge strides to address this issue. As with all companies, however, all is not perfect," according to one woman insider. "I've known some folks who felt discriminated against but rarely if ever have I seen this feeling justified," observes a manager. Make some dough and rock out with the Stones Our contact report that AMD pays industry standard salaries. One engineer remarked: "I guess they could pay me more, but then I guess I could stand to win the lottery too." But, AMD has "a good profit sharing program" and "one and a half percent match on our 401(k)." An employee stock purchase plan may turn out to be a special plus from a company "on the horizon of greatness." Other perks include "discounts for amusement parks," "free workout programs," an on-site daycare center, computer purchase reimbursement, "a fully paid MBA program," and even difficult-to-come-by "free Rolling Stones tickets." The corporate headquarters in Sunnyvale "are beautiful," and include a fitness center with two basketball courts. But the most popular perk is the company's sabbatical system, which offers AMD vets two extra months of paid vacation after they complete seven years.
Human Resources
PC processors and support;Networking products;Telecommunications products, services, and support;Embedded processors;Non-volatile memory products;Vantis (Programmable Logic);
Cyrix;Rise More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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