• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Chipmakers AMD, Fujitsu Form Venture

Posted on: Monday, 31 March 2003, 06:00 CST

By MATTHEW FORDAHL

SAN JOSE, Calif. (AP) -- Chipmakers Advanced Micro Devices Inc. and Fujitsu Ltd. said Monday they plan to combine their flash memory businesses into a new company that can better compete against industry leader Intel Corp. (INTC)

The new company, which will be called FASL LLC, will have assets of $2.5 billion when it starts operations in the third quarter, pending regulatory approval. It will be headquartered in Sunnyvale, Calif., where AMD is based.

Fujitsu and AMD have worked together on flash memory in a 50-50 joint venture for the past 10 years but have had to compete against each other in some markets.

Under the new arrangement, AMD will own 60 percent of the company compared to Fujitsu's 40 percent. They also will be the sole distributors of FASL's memory chips, which will be marketed under a brand name to be announced later.

"We expect the new company to be the strong No. 2 player in the flash market," said Hector Ruiz, AMD's chief executive. "The intent of Fujitsu and AMD is to achieve leadership in that market and gain over the competition."

Flash, which is used in cell phones, digital cameras and countless other devices, has been a bright spot for the semiconductor industry even as sales of personal computers have weakened.

Neither AMD nor Fujitsu would disclose any liabilities to be shifted to the new company or other financial details.

FASL's chief executive will be Bertrand Cambou, AMD's Memory Group senior vice president. It will start with a global work force of about 7,000 people.

AMD will contribute a chip-making plant in Austin as well as a research and development center in Sunnyvale and flash memory and assembly test operations in Thailand, Malaysia and China.

Japan-based Fujitsu will contribute its flash memory business division and the Fujitsu Microelectronics final assembly and test facility in Malaysia.

Intel Corp. is currently the leading flash memory maker, though in early March it warned that sales have been weaker than expected after a price increase.

Shares of AMD closed at $6.18, down 4 cents, in Monday trading on the New York Stock Exchange.

---

On the Net:

AMD

Fujitsu

More science, space, and technology from RedNova

Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

More News in this Category