AMD anchors its future in China
May 19, 2004
Establishes Advanced Micro Devices 'China' Co., Ltd.
Foreign-Invested Holding Company Located in Beijing's Zhongguancun Science Park
AMD (NYSE:AMD) announced it has established AMD (China) Co., Ltd., and co-hosted an inaugural ceremony with officials from the Zhongguancun Science Park in Beijing, where the company will be headquartered. AMD (China) Co., Ltd. is registered as a foreign-invested holding company, managing all AMD investments in China and enabling it to conduct an increased scope of business operations in the country. As part of its business strategy, the company intends to register branch offices in Shanghai and Shenzhen, oversee subsidiaries such as the recently announced AMD Technologies (China) Co., Ltd, in Suzhou, and it will also oversee AMD's Hong Kong operations.
Government officials from the Beijing municipal government, China Ministry of Science and Technology, Zhongguancun Science Park and other agencies attended the ceremony together with Karen Guo, corporate vice president of AMD, and president and general manager of AMD (China), Co. Ltd., and Iain Morris, group vice president of AMD's Personal Connectivity Solutions Group (PCSG).
"AMD's future is tied to China's future. And we believe it will be a bright future indeed," said Dr. Hector Ruiz, AMD's chairman of the board, president and chief executive officer, in a recorded address created to highlight the importance of the announcement. "Success requires a strong global footprint, especially in growing population centers where tomorrow's future products, applications, and solutions are being developed. If AMD is to be successful in general, we must be successful in China specifically."
Karen Guo added, "Establishing AMD China in the Zhongguancun Science Park is a new beginning for us, building on our earlier successes in China. Zhongguancun Science Park is becoming known as China's Silicon Valley -- renowned for its advanced technology, tightly-knit structure and commitment to innovation. Its industrial ecosystem makes it the perfect place for AMD to create a platform for further success. We will leverage AMD's world-leading technology and global resources, and devote ourselves to the business of our partners and customers. AMD and Zhongguancun will work together to build the Hi-Tech Great Wall to span the country, and help bolster the future of China's IT industry."
Guest of honor at the ceremony was Fan Boyuan, vice mayor of Beijing. "We are delighted to see that Zhongguancun is becoming a center of science and technology innovation as well as a gathering place for global resources," said Fan. "We warmly welcome high-technology giants from the Fortune 500 ranks like AMD to Zhongguancun, and to take part in the construction and development of China's high-tech industry. With its leadership position in semiconductor design and manufacturing, 64-bit technology leadership, and its MirrorBit(TM) Flash memory technology becoming a new industry standard, AMD will play an active role in driving innovation and further developing China's IT industry."
With the establishment of AMD (China) Co. Ltd., AMD plans to increase its local research and development (R&D) and support operations, as well as production and sales. AMD China intends to provide customers with a full complement of training and services, an engineering support lab, systems integration and software development. These developments will enable users in China to fully benefit from AMD's world-class semiconductor technology, products, and service.
A leading semiconductor manufacturer, AMD entered the China market in 1993 and has been engaged in developing and supplying the world's most advanced computer technology to the region. AMD, together with several partners, recently introduced 64-bit computing to the Chinese market, giving customers leading-edge, world-class technology and all the benefits that AMD64 technology provides. In March of this year, AMD China also received approval to establish a second, state-of-the-art test, mark and package (TMP) facility in Suzhou, China focusing on CPU production. This was AMD's second investment in the Suzhou Industrial Park, following the establishment of a Flash memory TMP facility in 1995, now known as FASL (Suzhou). This latest facility will allow AMD to be even closer to its PRC customers, and enhance AMD's competitiveness in the important Chinese marketplace. AMD customers -- including local OEMs and others in China -- can have even faster, easier access to AMD CPU microprocessor products in the region.
Currently, AMD's business partners in China include well-known local companies such as Founder, Thunis, Amoi, Dawning, Digital China and BLX, as well as leading global computer manufacturers such as IBM, HP, and Sun.
About Zhongguancun Science Park
Zhongguancun Science Park has become an important strategic technology resources hub in China. A technology innovation center and high-tech satellite base, Zhongguancun Science Park consists of new high-tech industry "clusters" with a competitive edge internationally. In 1988 when Zhongguancun Science Park was founded, there were only 11 foreign-invested high-tech enterprises occupying only 2% of the total in the park. By the end of 2003, there are 1,373 foreign-invested or joint ventures in the park, or 11.4% of the total. With fifty-five Fortune 500 companies establishing branch offices or R&D centers in Zhongguancun Science Park, Zhongguancun has become an important location for multi-national companies.