AMD and Fujitsu announce new memory company

A Japan headquarters will be located in Tokyo. The new company, to be called FASL LLC, will be based on the integration of AMD and Fujitsu’s Flash memory businesses, including their existing jointmanufacturing venture, Fujitsu AMD Semiconductor Limited. The new company is expected to begin operations in the third quarter of this year.

The combination of a customer-centric approach, industry-leading technology expertise, integrated manufacturing, and a streamlined business model is intended to create the pre-eminent global Flashmemory provider.

“Customers are looking for a strong, collaborative partner in the Flash memory category, and that’s what we intend to create with this new company,” said Hector Ruiz, AMD president and chiefexecutive officer. “AMD and Fujitsu have a long history of cooperation. Our joint manufacturing venture, which commenced in 1993, has been a model of success for U.S.-Japanese joint ventures. Todaywe are taking that relationship to the next level. I believe this new flash memory company will have all of the necessary ingredients, including scale of operations and revenues, to contend formarket leadership. This is the right move, at the right time, for both our customers and our companies.”

The MOU provides for:

  • AMD to own a 60% interest in the new company and Fujitsu to own a 40% interest; the financial results will be consolidated in AMD’s financial statements
  • Contributions of gross assets with a net book value in excess of $2.5 billion
  • AMD to appoint the CEO of the company, Bertrand Cambou, AMD senior vice president, Memory Group
  • Fujitsu to appoint the first chairman of the board, Masamichi Ogura, Fujitsu corporate senior vice president & group president, Electronic Devices Business Group
  • A board of directors consisting of ten members, six appointed by AMD and four appointed by Fujitsu
  • A marketing arrangement whereby the new company will sell Flash memory products through AMD and Fujitsu and their respective sales forces, under a product brand name to be announced by the start of operations of the new company
  • An initial global workforce of approximately 7,000.

AMD expects to contribute its:

  • Flash memory group
  • Fab 25 in Austin, Texas
  • Research and development center known as the Submicron Development Center (SDC) in Sunnyvale, California
  • Final Flash memory assembly and test operations in Thailand, Malaysia, and China

Fujitsu plans to contribute its:

  • Flash memory business division
  • Fujitsu Microelectronics (Malaysia) (FMM) final assembly and test operations

Fujitsu and AMD plan to jointly contribute:

  • The ongoing 50-50 manufacturing joint venture Fujitsu AMD Semiconductor Limited (FASL) located in Aizu-Wakamatsu, Japan

“We expect this new company to be a more formidable competitor in the Flash memory business,” said Masamichi Ogura, Fujitsu Limited corporate senior vice president and group president ofFujitsu’s Electronic Devices Business Group. “By joining together in a more comprehensive alliance, we can improve our market position through consolidated research and development efforts, as wellas benefit from greater access to each other’s technology and manufacturing expertise. Both AMD and Fujitsu share a common goal to make FASL a market leader in the Flash memory business and today’sMOU is an important step towards reaching that goal.”

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