greg - Re: "After years of battle between the 29K and i960, AMD abruptly dropped the market... I don't think AMD had the wherewithal to fight a major design war on both the x86 and 29K fronts and chose to concentrate on the x86 battle. "
AMD pretty much admitted this.
In fact, AMD used many of the 29K designers and the bulk of the 29K core to make their first K5 processor.
It was soooooo late and soooooo slow, that AMD ended up very deep trouble, having to buy NexGEN to get themselves upright again.
AMD cancelled the 29K program - and got rid of a lot of 29K engineers when they forked over the $600,000,000 - $800,000,000 for NexGEN - they couldn't afford two big money losing operations.
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AMD to end 29Ks; stress x86 program.
( Electronic News )
AUSTIN, TEXAS-Advanced Micro Devices is killing its 29000 embedded RISC processor development program, choosing instead to reallocate those resources to its embedded x86-compatible processor/controller program. Although the company will continue to manufacture and support its existing 29K product line, and will release such iterations of existing products as die shrinks and faster-speed versions, it does not plan to introduce any new 29K products, according to David Chavoustie, VP of the Embedded Processor Division here.
"We saw ourselves trying to support two masters-CISC and RISC. The investment cost to compete with the 20-some-odd guys doing RISC architecture is phenomenal from a software point of view, as well as training and level of support. We were doing this for something like less than 10 percent of the market," Mr. Chavoustie said.
"Trying to support two independent architectures diverts resources. You rob resources out of one and put them in the other. It's a self- defeating strategy. The other piece of this is that when you look at the rest of the capacity of this company-with things like flash memory and our DSP (digital signal processor) group-we are going to move forward with more sophisticated solutions, such as integrating memory on chip and new packaging, as well as process integration."
The reorganization is taking place in spite of the fact that the company denied it planned to end the 29K line when it introduced its first 486 product for the embedded system market at the Embedded Systems Conference last year (EN, Sept. 26, 1994).
Of the 4,000 employees at AMD's Austin facilities, fewer than I percent were engaged in developing and marketing the 29K. All engineering personnel will be retained and shifted to the E86 development program and as many as possible of' the marketing staff will be jockeyed to other positions within the company. However there may be an unspecified number of marketing personnel layoffs associated with the reorganization, AMD admitted, if suitable positions are not available. Currently, AMD has 500 personnel requisitions open, Electronic News has learned, and former 29K marketing employees may be offered some of those positions.
AMD earlier this year consolidated its Mobile Computing Division (MCD) with the Embedded Products Division (EPD) under the direction of Mr. Chavoustie (EN, May 1) in a newly formed strategic business unit chartered to design and develop MPUs based on AMD's forthcoming K86 family of processors. The new unit is an offshoot of the company' s Personal Computer Products Division (PCD). Prior to that earlier reorganization, Mr. Chavoustie, a 13-year AMD veteran, had been in charge of the MCD.
Although AMD does not plan to develop any new 29K products, that does not mean it is exiting the RISC business or even the 29K business entirely. The company's K86 microprocessor family is RISC-based and development will continue in that area.
"We are still in the RISC business and we are not getting out of the 29K business. We still have product under way but we are not going to commit the same level of resources going forward. We will use process migration to drive costs down but we are not going to be releasing new products you haven't heard of. Rather, we will develop speed and cost-benefit versions."
AMD will likely eventually migrate its K86 devices to embedded applications, as noted earlier. "It would be speculative at this point but there is no reason why in the future we wouldn't use a K86 part" for embedded applications, Mr. Chavoustie said. AMD recently announced plans to buy x86 MPU vendor NexGen for approximately $860 million (EN, Oct. 30). Mr. Chavoustie said it would inappropriate at this time to comment on whether and how that proposed merger could affect the company' s embedded processor strategy.
AMD had quietly let slip earlier this year that it was planning to announce a new 29K product next month, to be called the 29045. The company is now uncertain whether it will proceed with development and marketing of that device, it spokesman said.
"At this time, whether or not that particular product will be announced is under evaluation. It's an unannounced product at this point in time. That would be a product that would fall in the classification of currently being evaluated as to whether completion of the development work will be required."
AMD told Austin employees of the EPD reorganization last week, Mr. Chavoustie said, at the same time that it was taking place. He noted that because it is essentially a reshuffling of personnel that will not immediately affect any manufacturing resources, the company expects to be able to complete most of the changes quickly.
"We're sorting through the details of the structure; it, happened very quickly. We will have it done and finalized by the end of early (this) week."
Meanwhile, Mr. Chavoustie, who previously headed both the 29K effort and AMD's growing E86 embedded x86 program, will remain in charge of the company's E86 family of' microprocessors and controllers for embedded applications. AMD recently added a, new product-the Am486DE processor-to its embedded line (EN, Nov. 6). The new chip, manufactured on a 0.5-micron process at AMD's new Fab 25 here, is Suited for applications requiring system control such as telecommunication central office and PBX switches, factory automation and point-of-sale systems.
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By Jim DETAR
Copyright 1995 by International Publishing Corporation. Text may not be copied without the express written permission of International Publishing Corporation.
DeTar, Jim, AMD to end 29Ks; stress x86 program.., Vol. 41, Electronic News, 11-20-1995, pp 1.
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Paul |
