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=== Foundational years === Advanced Micro Devices was formally incorporated by [[Jerry Sanders (businessman)|Jerry Sanders]], along with seven of his colleagues from [[Fairchild Semiconductor]], on May 1, 1969.<ref>The other founding members were [[Edwin Turney|Ed Turney]], John Carey, Sven Simonsen, [[Jack Gifford (businessman)|Jack Gifford]] and three members from Gifford's team: Frank Botte, Jim Giles, and Larry Stenger.</ref><ref>Rodengen, p. 30.</ref> Sanders, an [[electrical engineer]] who was the director of marketing at Fairchild, had, like many Fairchild executives, grown frustrated with the increasing lack of support, opportunity, and flexibility within the company. He later decided to leave to start his own [[semiconductor]] company,<ref>[https://web.archive.org/web/20030501040300/http://www.businessweek.com/pdfs/fairkid.pdf "Fairchild's Offspring"]. ''[[Business Week]]''. August 25, 1997. p. 84.</ref> following the footsteps of [[Robert Noyce]] (developer of the first silicon [[integrated circuit]] at Fairchild in 1959)<ref>Mueller, Scott. [https://books.google.com/books?id=gXaRdKyD4PsC&pg=PA6 ''Upgrading and Repairing PCs'']. Que Publishing, 2013. p. 6.</ref> and [[Gordon Moore]], who together founded the semiconductor company [[Intel]] in July 1968.<ref name="abc">[[Michael S. Malone|Malone, Michael S.]] [https://abcnews.go.com/Business/story?id=86632&page=1&singlePage=true "Silicon Insider: AMD-Intel Feud Continues"]. ''[[ABC News (United States)|ABC News]]''. April 24, 2003.</ref> In September 1969, AMD moved from its temporary location in [[Santa Clara, California|Santa Clara]] to [[Sunnyvale, California]].<ref>Rodengen, p. 36.</ref> To immediately secure a customer base, AMD initially became a [[second source]] supplier of microchips designed by Fairchild and [[National Semiconductor]].<ref name="directory">Pederson, Jay P. [http://www.fundinguniverse.com/company-histories/advanced-micro-devices-inc-history/ ''International Directory of Company Histories'', Vol. 30] {{Webarchive|url=https://web.archive.org/web/20140719091859/http://www.fundinguniverse.com/company-histories/advanced-micro-devices-inc-history/ |date=July 19, 2014 }}. St. James Press, 2000.</ref><ref>Rodengen, p. 35.</ref> AMD first focused on producing logic chips.<ref>Rodengen, pp. 37β38.</ref> The company guaranteed quality control to [[MIL-STD-883|United States Military Standard]], an advantage in the early computer industry since unreliability in microchips was a distinct problem that customers β including [[computer manufacturer]]s, the [[telecommunications industry]], and instrument manufacturers β wanted to avoid.<ref name=directory /><ref name="singer">Singer, Graham. [http://www.techspot.com/article/599-amd-rise-and-fall/ "The Rise and Fall of AMD"]. TechSpot. November 21, 2012.</ref><ref>Rodengen, pp. 35, 38, 41, 42.</ref><ref name="svh">[http://www.siliconvalleyhistorical.org/#!amd-company-history/csut AMD Corporation] {{Webarchive|url=https://web.archive.org/web/20201112025526/https://www.siliconvalleyhistorical.org/#!amd-company-history/csut |date=November 12, 2020 }}. [[Silicon Valley Historical Association]]. 2008.</ref> In November 1969, the company manufactured its first product: the Am9300, a [[4-bit computing|4-bit]] [[Integrated circuit#SSI, MSI and LSI|MSI]] [[shift register]], which began selling in 1970.<ref name=svh /><ref>Rodengen, pp. 36, 38.</ref> Also in 1970, AMD produced its first proprietary product, the Am2501 logic counter, which was highly successful.<ref name="lojek220">Lojek, Bo. [https://books.google.com/books?id=2cu1Oh_COv8C&pg=PA220 ''History of Semiconductor Engineering'']. Springer Science & Business Media, 2007. p. 220.</ref><ref name="history">[https://www.amd.com/en-us/who-we-are/corporate-information/history Our History]. ''AMD.com''.</ref> Its bestselling product in 1971 was the Am2505, the fastest [[Binary multiplier|multiplier]] available.<ref name=lojek220 /><ref name="rodengen41">Rodengen, p. 41.</ref> In 1971, AMD entered the [[Random-access memory|RAM]] chip market, beginning with the Am3101, a [[64-bit computing|64-bit]] bipolar RAM.<ref name=rodengen41 /><ref>[https://books.google.com/books?id=UmZJAQAAIAAJ&q=%22am3101%22+%22ram%22 ''Electronic Design'', Volume 19, Part 3]. Hayden Publishing Company, 1971. p. 227.</ref> That year AMD also greatly increased the sales volume of its linear integrated circuits, and by year-end the company's total annual sales reached US$4.6 million.<ref name=lojek220 /><ref>Rodengen, pp. 42, 43.</ref> AMD went public in September 1972.<ref name=directory /><ref>Rodengen, p. 45.</ref><ref>Walker, Rob. [http://silicongenesis.stanford.edu/transcripts/sanders.htm "Interview with W. Jerry Sanders"] {{Webarchive|url=https://web.archive.org/web/20140102192309/http://silicongenesis.stanford.edu/transcripts/sanders.htm |date=January 2, 2014 }}. ''Silicon Genesis''. [[Stanford University]]. October 18, 2002.</ref> The company was a second source for Intel [[MOSFET|MOS]]/[[Large Scale Integration|LSI]] circuits by 1973, with products such as Am14/1506 and Am14/1507, dual 100-bit dynamic shift registers.<ref>Rodengen, p. 46.</ref><ref>[https://books.google.com/books?id=qVRNAAAAYAAJ&q=%22am14/1506%22/1506%22 ''MOS/LSI Data Book'']. Advanced Micro Devices, 1980. pp. 5β1, 5β2, B-8.</ref> By 1975, AMD was producing 212 products β of which 49 were proprietary, including the Am9102 (a [[Static random-access memory|static]] [[N-type semiconductor|N-channel]] 1024-bit RAM)<ref>[https://books.google.com/books?id=RHFJAQAAIAAJ&q=%22am9102%22+AMD ''Electrical Design News, Volume 19, Issues 13β24'']. Rogers Publishing Company, 1974. p. 86.</ref> and three low-power [[Schottky barrier|Schottky]] [[Mid-scale integration|MSI]] circuits: Am25LS07, Am25LS08, and Am25LS09.<ref name="rodengen55">Rodengen, p. 55.</ref> Intel had created the first [[microprocessor]], its 4-bit [[Intel 4004|4004]], in 1971.<ref>Venkata Ram, S.K. [https://books.google.com/books?id=MUI1ioZrnzcC&pg=PA3 ''Advanced Microprocessor & Microcontrollers'']. Firewall Media, 2004. p. 3.</ref><ref>[https://web.archive.org/web/20130207174740/http://www.pbs.org/wgbh/americanexperience/features/transcript/silicon-transcript/ Transcript: ''Silicon Valley'' (documentary)]. ''[[American Experience]]''. [[PBS]]. 2013.</ref> By 1975, AMD entered the microprocessor market with the [[AMD Am9080|Am9080]], a [[reverse engineering|reverse-engineered]] clone of the [[Intel 8080]],<ref>{{cite web |date=December 29, 1997 |title=Interview with Shawn and Kim Hailey |url=http://silicongenesis.stanford.edu/transcripts/hailey.htm |url-status=dead |archive-url=https://web.archive.org/web/20131111155525/http://silicongenesis.stanford.edu/transcripts/hailey.htm |archive-date=November 11, 2013 |access-date=October 20, 2014 |publisher=Stanford University Libraries}}</ref><ref name="rodengen50">Rodengen, p. 50.</ref><ref>Hitt, Michael; Ireland, R. Duane; Hoskisson, Robert. [https://books.google.com/books?id=Hxj4qCuHNPQC&pg=PA41 ''Strategic Management: Competitiveness and Globalization, Cases, Volume 2'']. Cengage Learning, 2008. p. 41.</ref> and the [[AMD Am2900|Am2900]] [[bit-slice]] microprocessor family.<ref name=rodengen50 /> When Intel began installing [[microcode]] in its microprocessors in 1976, it entered into a [[cross-licensing]] agreement with AMD, which was granted a copyright license to the microcode in its microprocessors and peripherals, effective October 1976.<ref name=rodengen55 /><ref>Lennon, Michael J. [https://books.google.com/books?id=i3MLYUjRWisC&pg=SA4-PA36 ''Drafting Technology Patent License Agreements'']. Aspen Publishers Online, 2007. p. 4-36.</ref><ref>Pane, Patricia J. and Barbara Darrow. [https://books.google.com/books?id=VTwEAAAAMBAJ&pg=PT6 "AMD Asserts Right to Distribute Intel Code"]. ''[[InfoWorld]]''. October 1, 1990. p. 5.</ref><ref name="justia1994">[http://law.justia.com/cases/california/supreme-court/4th/9/362.html Advanced Micro Devices, Inc. v. Intel Corp. (1994)]. No. S033874. December 30, 1994. ''Justia.com''. Retrieved October 25, 2014.</ref><ref name="sec1996">[https://www.sec.gov/litigation/admin/3437730.txt SECURITIES EXCHANGE ACT OF 1934: RELEASE No. 37730]. [[Securities and Exchange Commission]]. ''Sec.gov''. September 26, 1996. (Accessed October 25, 2014.)</ref> {{anchor|AMC}}In 1977, AMD entered into a joint venture with [[Siemens]], a German engineering conglomerate wishing to enhance its technology expertise and enter the American market.<ref name="malerba">Malerba, Franco. [https://books.google.com/books?id=pC1oHOTnaLAC&pg=PA166 ''The Semiconductor Business: The Economics of Rapid Growth and Decline'']. University of Wisconsin Press, 1985. p. 166.</ref> Siemens purchased 20% of AMD's stock, giving the company an infusion of cash to increase its product lines.<ref name=malerba /><ref>Rodengen, pp. 59β60.</ref><ref>[https://books.google.com/books?id=liUrAAAAYAAJ&pg=PA53 ''Reindustrialization Or New Industrialization: Minutes of a Symposium, January 13, 1981, Part 3'']. National Academies, 1981. p. 53.</ref> The two companies also jointly established Advanced Micro Computers (AMC), located in Silicon Valley and in Germany, allowing AMD to enter the [[microcomputer]] development and manufacturing field,<ref name=malerba /><ref name="rodengen60">Rodengen, p. 60.</ref><ref>[http://californiafirm.us/advanced-micro-computers-inc.nhd7.california-company-profile.html ADVANCED MICRO COMPUTERS, INC.] {{webarchive|url=https://web.archive.org/web/20141104070612/http://californiafirm.us/advanced-micro-computers-inc.nhd7.california-company-profile.html |date=November 4, 2014 }}. ''CaliforniaFirm.us''.</ref><ref>[http://www.californiacompanieslist.com/advanced-micro-computers-inc-cje0/ ADVANCED MICRO COMPUTERS, INC.] {{Webarchive|url=https://web.archive.org/web/20141104095752/http://www.californiacompanieslist.com/advanced-micro-computers-inc-cje0/ |date=November 4, 2014 }}. ''CaliforniaCompaniesList.com''.</ref> in particular based on AMD's second-source [[Zilog]] [[Z8000]] microprocessors.<ref name=freiberger /><ref>[https://books.google.com/books?id=4W1VAAAAMAAJ&q=%22advanced+micro+computers%22+z8000+OR+zilog ''Mini-micro Systems'', Volume 15]. Cahners Publishing Company, 1982. p. 286.</ref> When the two companies' vision for Advanced Micro Computers diverged, AMD bought out Siemens' stake in the American division in 1979.<ref>Rodengen, p. 62.</ref><ref>"Siemens and Advanced Micro Devices Agree to Split Joint Venture". ''[[The Wall Street Journal]]''. February 14, 1979. p. 38.</ref> AMD closed Advanced Micro Computers in late 1981 after switching focus to manufacturing second-source Intel x86 microprocessors.<ref name="freiberger">Freiberger, Paul. [https://books.google.com/books?id=zC8EAAAAMBAJ&pg=PA28 "AMD sued for alleged misuse of subsidiary's secrets"]. ''[[InfoWorld]]''. June 20, 1983. p. 28.</ref><ref name="swaine">Swaine, Michael. [https://books.google.com/books?id=SD0EAAAAMBAJ&pg=PA78 "Eight Companies to produce the 8086 chip"]. ''[[InfoWorld]]''. November 30, 1981. p. 78.</ref><ref>Rodengen, p. 73.</ref> Total sales in [[fiscal year]] 1978 topped $100 million,<ref name=rodengen60 /> and in 1979, AMD debuted on the [[New York Stock Exchange]].<ref name=history /> In 1979, production also began on AMD's new [[semiconductor fabrication plant]] in [[Austin, Texas]];<ref name=history /> the company already had overseas assembly facilities in [[Penang]] and [[Manila]],<ref>Rodengen, p. 59.</ref> and began construction on a fabrication plant in [[San Antonio]] in 1981.<ref name="HittC26">Hitt, Michael; Ireland, R. Duane; Hoskisson, Robert. [https://books.google.com/books?id=gZ60WQm54CoC&pg=PT498 ''Strategic Management: Concepts and Cases'']. Cengage Learning, 2006. p. C-26.</ref> In 1980, AMD began supplying semiconductor products for telecommunications, an industry undergoing rapid expansion and innovation.<ref>Rodengen, pp. 65, 71β72, 79β80.</ref>
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