Going Global & Managing Global Businesses Case Study

AMD: Consolidating Presence in China

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Abstract:
In 2006, AMD (Advanced Micro Devices, Inc) the second largest chip maker in the world, planned to focus on high growth markets from South Asia to Eastern Europe. The company's prime focus was China as it had been considered as a key driver of growth in the Asia-Pacific region. AMD's invasion into the Chinese market began in 2004 when Lenovo started using AMD's processors. But in 2006, the company planned to strengthen its position in China by making a strategic agreement with the nation's top computer manufacturers. AMD had already challenged Intel with its innovative product and acquisitions but its expansion in China may further eat away Intel's market share. The case discusses in detail AMD's strategy to consolidate its presence in China, problems associated with it and how the company planned to minimise the risk

Pedagogical Objectives:

• To understand the Asian chip market
• To analyse the semiconductor market in China
• To debate on AMD's strategic initiatives.

Keywords : AMD (Advanced Micro Devices, Inc); Intel; Microprocessor; China; Semiconductor; Dell (Dell Computer Corporation); Hewlett Packard (HP); Lenovo; Founder technology; Dynamic random access memory (DRAM); Texas Instruments; ATI (ATI Technologies is a subsidiary of AMD); Samsung; Taiwan Semiconductor Manufacturing Co (TSMC); Chip industry