Abstract
By way of an introduction, we have to do a small overview of semi conductor industry and see where the second worldwide larger microprocessor designer and maker, AMD, is. The high gross margins rate of chip makers compared to the other actors of the value chain IT goods industry (PC, server and mobile) shows us that microprocessors and software/device (Microsoft) are the two key points of the industry. For example, Intel and AMD, microprocessor maker had respectively a gross margin of 56.7% and 39.3% from 2003 and IBM and Dell, PC manufacturers, got 37% and 17.9% in 2003 (Exhibit 8). It is competitive industry drives by the dominant Intel which have known in 2003 a rupture thanks to AMD. This company is a distant follower of Intel which has a really dominant position on the market which can influence all their providers and the entirely industry. In order to differentiate its company, AMD has chosen to adopt a new innovative strategy to counter Intel dominance. So we are wondering how the move of AMD can be effective, yield commercially viable and by what means?
