Semiconductor Industry: AMDs global strategies and opportunities.

As reported by the KPMG group , the latest trend in the global semiconductor industry has caused the decline of the US market share for several reasons reviewed in this document . In addition to the general outlook of the industry in the present years , the document also looks at the present position of the AMD company and how the company is planning to face its upcoming challenges in the market in to meet market demands and attempt at a larger share of the industry . It seems the market share has known some evident shifts

as the global tendency of outsourcing work and moving operations to third party members overseas is coming to be of common procedure to the leading companies in the industry

The global semiconductor industry is made of companies primarily situated in the US , Europe , and South East Asia . In general , the trend in the past couple of years has been on the effort to realign company practices for relocating chosen operations to Asian countries in an effort to reduce cost . The overall tendency seems to have a cohesive relation between keeping a competitive edge in a market that is evolving rapidly , and focusing attention on development and research in the most realistic fashion for obvious concerns of profitability . The trend based on Moore 's Law has reached a level that requires too much cost for R D at a time of market where the shift is put on consumer based products rather than industrial based products . The demands of the market are being influenced by other technology domains that rely on the design and manufacturing of fast processors . The Moore 's Law prediction that the number of transistors on a chip would double every other year has remained accurate for the past 40 years approximately . During that time , companies have heavily concentrated their research and development efforts to stay in marge of the Moore 's law , and thereby put most of their efforts in the hardware design of chips . As the research to create ever faster chips requires greater effort and capital , companies in the semiconductor industry have began to look at varying options to reduce their costs while adopting other methods of design and manufacturing processes . The objective for each company is in preserving a high level of competitive edge while being proactive in developing products to meet the latest trends in the market . Most of the companies are now concentrating on the design and manufacturing of chips based on new semiconducting materials as well as nanotechnology advances

A recent survey conducted by KPMG questioned 48 executives from 32 companies in the semiconductor market worldwide (KPMG , 2005 . The leading companies such as Intel and AMD were also included in the survey and some interesting tendencies were revealed . The survey shows that R D efforts represented only 11 of the overall budget in the industry This comes to prove that there is a clear tendency in shifting from the Complementary Metal Oxide Semiconductor (CMOS ) phase which is...