I don’t usually pay much attention to corporate executives and the hirings, firings and resignations thereof. It’s not that executives are unimportant, it’s that they’re not exactly what I’m passionate about. While I never pass up an opportunity to meet with an exec, I generally walk away more impressed after a conversation with a Fellow.

 

Today’s resignation of AMD’s former CEO Dirk Meyer seemed like reason to pay attention. It wasn’t a scandal or anything vile that led up to the resignation, just a good old fashioned differing of opinion. To quote AMD’s press release:

”However, the Board believes we have the opportunity to create increased shareholder value over time. This will require the company to have significant growth, establish market leadership and generate superior financial returns. We believe a change in leadership at this time will accelerate the company’s ability to accomplish these objectives.”

The implication being that Dirk’s plan for AMD wouldn’t result in significant growth, establish market leadership and generate superior financial returns. The question is what was Dirk’s plan and what direction does AMD’s Board of Directors believe it should be headed in instead?

Dirk Meyer has been nothing but good for AMD since he took control in 2008. As AMD points out Dirk successfully spun off Global Foundries (the industry as a whole may owe him thanks for that as it seems to be gearing up to be a major player in the future of chip manufacturing). In doing so Dirk also floated a sinking ship—AMD managed a return to profitability under his watch. We’re also on the cusp of AMD’s most active year ever. Brazos just launched and we’ll get both Llano and Bulldozer before the year is out. When was the last time AMD launched three different architectures in a 12 month period? Never, that’s when.

So what wasn’t Dirk prepared to do? AMD still doesn’t have a public ultra mobile (read: smartphone) strategy, but would that be enough to resign over? I don’t have any reason to believe that Bobcat wouldn’t eventually be folded into a smartphone SoC. AMD typically lets Intel open up a new market and then follows it in as an alternative. I suspect it’s a safer bet to let Intel duke it out with ARM for control of the smartphone market before deciding to enter. Based on the outcome there, AMD could choose to enter under either the x86 or ARM banners.

I was talking to Ryan Smith earlier tonight when the news broke and he mentioned something that caught my interest:

“Mark my words, at some point they're going to try to sell the company to ATIC. Let ATIC deal with fighting Intel, and the board/investors can pocket a nice profit. Certainly if you were trying to sell, you'd sack Dirk. He doesn't seem like the kind of guy that would let them do it.”

This is just one of the many reasons I love working with Ryan—he always looks at things at an angle I hadn’t previously considered. ATIC, the company funding Global Foundries, would be a good suitor for AMD. It has the resources to fund a fight with Intel as we’ve already seen from Global Foundries...oh, and it also happens to own a number of microprocessor fabs that conveniently are very well suited to manufacturing AMD microprocessors.

Obviously everything here is pure speculation. While Dirk saved AMD from extinction, the press release seems to indicate he wouldn’t be the right guy to take AMD to the point of making tons of money. With Intel executing as well as it has been, I’m not sure if a change in CEO will be enough to fix that. AMD needs an influx of revenue to fund the sort of projects it needs in order to gain significant market share. 

To be honest, I don’t know Dirk personally and I don’t know why he’d choose to part ways with AMD. Changes like this are usually the result of something significant however. We’ll probably find out the answer in the next 24 months.

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  • Jamahl - Tuesday, January 11, 2011 - link

    is buying AMD. Reply
  • Matthew Barclay - Tuesday, January 11, 2011 - link

    I think some sort of stock manipulation is going on. They may want a dip in their value before announcing positive results for Q1 later in the month. Certainly they knew how this action would impact their stock price. Maybe some investors are making a mint on this. Reply
  • piesquared - Tuesday, January 11, 2011 - link

    amazing anand, you come out of the woodworks and write an AMD story. So it seems you have no problems writing about AMD when it's negative, but crickets chirping about fusion... of course you found somebody else to write a blurb about fusion at CES, but intel didn't want you to be associated with it? fraud. i guess that new ex-intel executive working here is working out just right for intel. fraud. Reply
  • formulav8 - Tuesday, January 11, 2011 - link

    Get over it already.

    Anyways, as a AMD stock holder this is bad news. I really think Dirk was the best man AMD had right now.

    You know the biggest reason with his leaving is greed. I can't stand greed at all. It causes so many problems.....
    Reply
  • AnandThenMan - Tuesday, January 11, 2011 - link

    piesquared makes an extremely valid point. This site is dumb, deaf and blind on purpose when it comes to talking about AMD. Unless it involved a major launch which they can't ignore, or it's negative.

    Anandtech LOVES Intel and takes great glee in writing about them, like a fan of their favorite sports team. It's painfully obvious, but has no place on a site that is supposed to be an unbiased source of information.
    Reply
  • silverblue - Wednesday, January 12, 2011 - link

    If I remember correctly, Anand praised the Phenom II as "a true return to competition".

    Ah, here we are...

    http://www.anandtech.com/show/2702

    I'd say that was a rather balanced review.
    Reply
  • Kimmono - Wednesday, January 12, 2011 - link

    When Anand start using software in the tests that are truly multi threaded, then the benchmarks will be a bit more realistic.

    Also, who only use one program at a time? This is not picked up by the tests.
    Reply
  • silverblue - Wednesday, January 12, 2011 - link

    That's a good point, however we're still a way off having properly multithreaded software being the norm so what could they do besides design their own multithreaded test?

    Your idea could give more weight to AMD's idea of physical cores being the better option, though I'm not sure how much it would matter in the end. It might end up extolling the virtues of Intel's Hyperthreading approach.
    Reply
  • ash9 - Tuesday, January 11, 2011 - link


    If things were as bad as knee-jerk perception, I would have thought Apple to have made its decision months ago.

    In the kingdome of blind the one ey'd man is king.
    [1640 G. Herbert Outlandish Proverbs no. 469]

    As for Dirk Meyer, I refer to these 3 articles and ask; what did Acer (Microsoft) see that Meyer didnt? And why wasnt it working at CES? Dammit!

    http://news.cnet.com/8301-13924_3-20019680-64.html

    http://www.gottabemobile.com/2010/11/23/acer-annou...

    http://www.electronista.com/articles/10/12/29/braz...

    asH
    Reply
  • mAxius - Tuesday, January 11, 2011 - link

    i think what happened is the board saw nvidia competing in the low power arm soc market. The board probability feels that it is a market that amd should be paying more attention to that segment either with an arm cpu or an x86 cpu. X86 is still too power hungry at this time bobcat helps a ton though, i feel that amd will be getting an arm license and possibility purchasing an arm design firm soon. Reply

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