In 2003, nothing could stop AMD. This was a company that moved from a semiconductor company based around second-sourcing Intel designs in the 1980s to a Fortune 500 company a mere fifteen years later. AMD was on fire, and with almost a 50% market share of desktop CPUs, it was a true challenger to Intel’s throne.
AMD began its corporate history like dozens of other semiconductor companies: second sourcing dozens of other designs from dozens of other companies. The first AMD chip, sold in 1970, was just a four-bit shift register. From there, AMD began producing 1024-bit static RAMs, ever more complex integrated circuits, and in 1974 released the Am9080, a reverse-engineered version of the Intel 8080.
AMD had the beginnings of something great. The company was founded by [Jerry Sanders], electrical engineer at Fairchild Semiconductor. At the time [Sanders] left Fairchild in 1969, [Gordon Moore] and [Robert Noyce], also former Fairchild employees, had formed Intel a year before.
While AMD and Intel shared a common heritage, history bears that only one company would become the king of semiconductors. Twenty years after these companies were founded they would find themselves in a bitter rivalry, and thirty years after their beginnings, they would each see their fortunes change. For a short time, AMD would overtake Intel as the king of CPUs, only to stumble again and again to a market share of ten to twenty percent. It only takes excellent engineering to succeed, but how did AMD fail? The answer is Intel. Through illegal practices and ethically questionable engineering decisions, Intel would succeed to be the current leader of the semiconductor world.
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