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AMD, Fujitsu Joint Venture Substantially Increases Flash Memory Production

AMD, Fujitsu Joint Venture Substantially Increases Flash Memory Production

SUNNYVALE, CA -- March 9, 1998 -- The AMD and Fujitsu joint venture, Fujitsu-AMD Semiconductor Ltd. (FASL), has commenced shipments of flash memory from its second wafer fabrication factory. This additional capacity will allow AMD to meet the growing demand for its extensive offering of flash memory devices.

Fab 2, which broke ground in March 1996, is located adjacent to Fab 1 in Aizu-Wakamatsu, Japan. The facility includes over 80,000 square feet of Class 1 cleanroom space which, at full capacity, will be producing approximately 6,500 8-inch wafers a week. Initial shipments were 16-Megabit flash devices, executed on a 0.35-micron process technology. By the end of the year the facility plans to ship the first sub-0.25 micron flash devices.

"Our continuing investments in manufacturing are driven by our customers' preference for AMD's single voltage flash memories and show our commitment to the growing flash memory market," said Walid Maghribi, general manager and group vice president of AMD's Memory Group. "We are dedicated to providing our customers with market driven, value-added products."

Fujitsu AMD Semiconductor Ltd. (FASL)
FASL was formally launched in April 1993 to manufacture jointly developed non-volatile memory products. The FASL facilities represent more than $2 billion in investments by the two companies.

Safe Harbor Statement
This news release contains forward-looking statements that involve risks and uncertainties, including the timely completion of the new production line, the effect of changing economic conditions, and such risks and uncertainties detailed from time to time in the company's SEC reports.



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