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1、Annual Report 2002Customer-centric innovationConnections.Solutions.Differentiation.of people everywhereTouchingthe livesThe future of the semiconductor industry is nowThe future holds great promise for AMD.Thats because,now more than ever,our productsdeliver the potential to touch the lives of peopl
2、e in every corner of the globe,in ways neverbefore possible.They offer the potential to improve quality of life,to influence the way wework and play.Silicon and software have become the steel and plastic of the digital economy.Take alook at your cell phone.At a most basic level,its a keyboard and di
3、splay brought to life bysilicon and software.So is your personal digital assistant(PDA),your digital television,eventhe dashboard of your car.The information technology industry is no longer a distinct andfreestanding one.It is rapidly becoming the DNA of every other industry and its fundamentallych
4、anging the dynamics of everything it touches.A time for changeWhile the prospects for AMD and the semiconductor industry as a whole are promising,theyare not without their challenges.And like many industries,the semiconductor sector must takea hard look at itself and revisit its fundamental conditio
5、ns for success in order to stay vibrantand thrive.The seeds of change in the semiconductor industry were identifiable for those who werelooking.Some years ago,a venture capitalist by the name of Arthur Rock put forth a littleknown premise regarding the cost of doing business in the semiconductor ind
6、ustry.Now astatement of fact rather than theory,Rocks Law asserts that the cost of capital equipmentin the industry will double every four years.At the same time,the more widely known principle called Moores Law projected that thecost of a standard transistor would decrease by half every 18 months.A