In 1975, AMD took its first major step into the processor world by launching the AM9080, a replica of the Intel 8080. This move marked the beginning of AMD’s long journey in the CPU market.
AM9080
What stood out was not just the reverse engineering that made it possible, but the incredible profit margin — each unit cost only 50 cents to make and sold for around 700 dollars.
This strategic move came from AMD’s need to stay competitive with Intel, which dominated the market with its 8080 processor. Without direct access to Intel’s technology, AMD turned to reverse engineering to create a functional clone. Engineers disassembled the original chip, studied its structure, and replicated it without violating patents.
The result was the AM9080, a processor fully compatible with Intel’s 8080 software but more efficient to produce. AMD also took advantage of the opportunity to sign a cross-licensing agreement with Intel in 1976, becoming an official “second source.” Under this deal, AMD paid Intel $25,000 at signing and $75,000 per year for the license.
Legacy and Impact on AMD’s Future
The story of the AM9080 reflects not only AMD’s technical skill but also its ability to spot business opportunities. At a time when microprocessors were essential for the growth of personal computers, this chip helped AMD become a serious competitor in the industry.
Fifty years later, AMD is now recognized for its cutting-edge processor designs, including the Ryzen series for consumers and the EPYC line for servers. But it all began with one bold clone that challenged Intel and proved how precise reverse engineering could change the direction of a company.
