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Shooting off the chip
"Gone are the days when we were seen as bad copycats of the silicon industry"
Friday, June 09, 2006
:: Inside Out
Ambition : To become a relevant part of the PC industry, continue to deliver value to industry and the home segment
What I would like to change about myself: Learn to relax a little bit and delegate a lot of things to people
Hobbies : Explore new restaurants every weekend with family, spending time with family
Best moments : When my first son was born
A must-have : Laptop, BlackBerry
Worst fears : Becoming useless, running out of ideas, losing memory
Passionate about : Wanting my kids to do well; winning against odds
Favorite gizmo : Video iPod
Favorite destination : Tahiti, Costa Rica, Hawaii, Kosamui in Thailand
What ticks you off : People who see a loose thread and don't pick it up (people who are mere spectators)
A lesson for life :  Never give up. Don't cut the losses and move on
Motto : Lead by example”

It was time to repay his debt to his teachers and alma mater. Last month Ajay Marathe, president of chip vendor AMD in India, and more fondly remembered by his teachers as a naughty but studious backbencher, set up a full-fledged PC lab in King George School in Mumbai. Though he invested in this initiative out of personal interest, AMD and its OEM partners will soon expand this “PC lab in schools” concept to schools across India.

Marathe's enthusiasm underscores AMD's resurgence and newly acquired reputation as a company that has the potential to chip away market share away from ace rival Intel with its Opteron server processors. “Gone are the days when we were seen as bad copycats of the silicon industry. Now we are trying to prove ourselves in the market place.”

He is visibly proud about being part of the cultish, driven and “green-blooded” company. Marathe who joined the AMD headquarters in Sunnyvale after his MS in industrial engineering from Texas Tech in 1984, has seen the highs and lows of the company. He admits he joined the company due to circumstances than out of choice. While his American classmates in his batch opted for job offers from Texan oil firms and defence companies, Marathe who did not have a green card, had to make do with a facilities engineering job at AMD in California.

The '80s were an exciting time to be in Silicon Valley. Besides engineering and design, high-tech companies in the area also had manufacturing facilities in the Valley. Marathe's initial assignment in facilities engineering was his ticket to manufacturing sites where he designed wafer fabs and clean water systems. Two years later he got into manufacturing.

The Valley saw tumultuous and depressing times in the mid-80s when Japanese companies started dumping cheap technologies and products putting American tech companies out of business. Recalling those troubled times, Marathe said that it was quite depressing to watch AMD come within shouting distance ($970 million) of $one billion in revenues and then plumb into a deep recession.

By 1990, the company had shifted manufacturing to Penang in Malaysia and Marathe played an active role in overseeing the technology transfer and operations. He managed the Penang operations sitting out of the US, and was responsible for the gamut of work from process recipes, logistics, planning, supply chain to automation and financial metrics.

Marathe is quite modest about his achievements. When Hector Ruiz took over as CEO from Jerry Sanders in 2000, he looked to change matters and set right the kinks and problems at AMD. The company then was struggling two generations behind Intel and Ruiz assumed that the problem lay with manufacturing, which was Marathe's domain.



“Manufacturing got a bad rap because the company was lagging behind. But what was true was that we had ventured into our own architecture. Ruiz found that the only group working like a well-oiled machine is manufacturing.”

Marathe had settled into his job nicely for almost a decade. By 2000, Marathe felt himself getting into a comfort zone. “That was not a good thing. I wanted a change though I was happy being a boss.” So he approached Ruiz for a change. Recognizing Marathe's strength at turning around a unit and sustaining efficiency, Ruiz gave him an assignment to fix and streamline IT within the corporation. “He wanted AMD to be a real-time enterprise so that IT could be integrated into the company's operations.”

Marathe took up the challenge and became corporate VP, business transformation group. He overhauled the systems completely. Application development and help desk was outsourced to HCL in Noida in 2002.

He does admit that during the dotcom boom of 2000, he was tempted on many an occasion to take up a juicy job offer that came his way. But then AMD's stickiness factor outweighed other options. “The biggest reason was that the company was ready to listen and also the fact that we had something to prove to ourselves.”

By 2002, he was again ready for another change and this time knew that he wanted to play a part in India's IT boom. AMD agreed since it wanted to kick-start its operations in India by establishing a strong base, show the company's commitment to India, its OEM partners and the government.

“Frankly we had ignored a lot of this part of the world. We wanted to show the government that we just don't want the benefit of what they are doing but also play a role of shaping policies like the semiconductor policy.”

Marathe wants to make sure he achieves the target of the company wide target to achieve 30% share in revenues by 2008. Looking at his enviable track record, this daunting target could come well within the company's grasp.


Priya Padmanabhan

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