AMD’s success: the story of its creation
The American company AMD is one of the largest manufacturers of processors, motherboards, and chipsets. Its history began in the 1970s, and since then AMD has taken a high place in the market of semiconductor products.
The company was organized by young engineers who wanted to realize their ideas. However, at that time they worked for Fairchild Semiconductor Corporation, which did not encourage employees’ initiative and did not strive to develop. The conservatism of the management and its unwillingness to take market trends into account led to the fact that seven employees of the company and the head of the marketing department Jeremy Sanders decided to create their own business.
The new team had everything they needed to succeed. The ambitious engineers were eager to develop and actively studied modern technology, and Sanders was an excellent specialist who knew what the target audience wanted and how to present products to it. Thus in 1969, Advanced Micro Devices, or AMD, was born, with its office in the apartment of one of the founders, and its registered capital totaled 100 thousand dollars.Sanders played a huge role in the success of the business. He understood that it was extremely difficult for newcomers to compete with such giants as Intel, so he staked on marketing. For example, the first time AMD sold its production at a low price, at the loss. However, this approach brought a great result – the brand became recognizable, and many customers became regular customers. One of the key ideas of the company was to develop chips and devices that would be available to a large number of consumers. And already in the first year of its existence, AMD released its own processor and chip register on the market.
Initially, the company released products under the patents of Intel Corporation. By 1975, the AMD staff was more than 1,500 people, manufacturing products in factories in the U.S. and Malaysia. Achieving high profits, the company created a research and development department, and after a while introduced its own chip, whose technical specifications exceeded those of a competitor. In 1975, AMD launched the production of memory boards, and a little later – microprocessors. The latter became extremely successful commercially.
At the same time, the company did not stop at the achieved results, it continued to invest in the development of new technological solutions. This allowed AMD to resist the onslaught of competitors and strengthen its position as a reliable manufacturer. And until today, the company’s processors are in great demand. In 2019, AMD became a leader in this sector in the market in Japan, the Netherlands, and Germany.
The company continues to focus on the development of new products, being ahead of its strong competitors in a number of segments.