In 1998, Atiq Raza, AMD VP, before K7 launch, said: "As long as we stay close to their highest performing parts, Intel cannot hurt AMD without hurting themselves. That’s the name of the game: stay close, big volume, higher performance, execute flawlessy". (MaximumPC 10/98)
Atiq Raza was Sanders heir apparent, but unfortunately he left the IT industry in 1999 for personal reasons. And instead of Raza, as AMD CEO was selected Hector Ruiz, so Sanders’ plans blowed up. Which plans?
For example, in order to improve AMD production, Sanders looked for an alliance with UMC: “The AMD/UMC fab (or fabrication plant) will knock out 300-mm wafers for high volume production of PC processors 'and other logic products'. UMC will also make PC processors for AMD in a separate foundry agreement. This will augment production at AMD's Fab 30 in Dresden, where Athlon chips are made. And it will enable AMD to move more quickly to the manufacture chips with a smaller die size. UMC-made AMD CPUs will kick off on the 130 nanometer (more commonly calibrated as 0.13micron) production line. The duo aim to move to 65 nanometer production in 2005” (Source).
Ruiz, appointed as CEO, changed AMD philosophy: he tried to challenge Intel in its game. Instead to continue a price war, like during K7 times, Ruiz priced K8 CPUs at Intel levels (UMC alliance was rejected). Instead to continue to invest in R&D, Ruiz bet on Intel inability to back into play (R&D investment was reduced).
Registred Patents, from 1998 to 2005, by AMD and Intel. Source: Calendar Year Preliminary List of Top 20 Patenting Organizations, by U.S. PATENT AND TRADEMARK OFFICE
| CEO | Sanders | Sanders | Sanders | Sanders | Sanders/Ruiz | Ruiz | Ruiz | Ruiz |
| Year | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
| AMD | 557 | 825 | 1055 | 1086 | 1154 | 905 | 802 | Out of Top20 |
| Intel | 705 | 735 | 797 | 809 | 1077 | 1592 | 1601 | 1549 |
Maximum PC, 10/2008
This modus operandi killed long term AMD potentiality, and Dirk Meyer was just a victim of this wicked strategy. From 2002 to 2008, Ruiz destroyed AMD by a financial point of view, and Meyer tried to made a new miracle with Bulldozer and the APUs (Also he was forced to accept the FABs spin-off ... GlobalFoundries). But as uArch engineers know, “Designing microprocessors is like playing Russian roulette. You put a gun to your head, pull the trigger, and find out four years later if you blew your brains out” (Robert Palmer, CEO of DEC). The miracle didn’t happen, and now people unfairly blame Meyer.
"Inside CEO Succession: The Essential Guide to Leadership Transition", by Thomas J. Saporito and Paul Winum, John Wiley & Sons, Inc., 2012