FASL LLC to Increase Flash Memory Capacity in Response to Strong AMD and Fujitsu Customer Demand

110nm technology to be employed to serve growing wireless demand

Sunnyvale, CA -- 12/9/2003 -- FASL LLC plans to ramp leading-edge manufacturing capacity for Spansion™ Flash memory products in 2004 as part of its long-term strategy to meet wireless market demand from AMD (NYSE: AMD) and Fujitsu (TSE: 6702) customers. By the end of 2004, 110nm 128Mbit equivalent capacity is planned to exceed 80% of the current output of FAB 25 and JV3, the company’s two leading-edge Flash memory fabs. The 110nm 128Mbit equivalent capacity is planned to be over 60% of total fab capacity output.

“Wireless solutions from our leading-edge customers demand high-fab capacity, with leading-edge Flash technologies, supporting state-of-the-art performance,” explained Amir Mashkoori, Group Vice President and General Manager of the Wireless Business Unit for FASL LLC. “The planned ramp of 110nm technology through 2004 will support both our leading-edge Floating Gate technology and especially our state-of-the-art, second-generation, 110nm MirrorBit™ technology. Both technologies will enable market-leading differentiated solutions for our wireless customers.”

110nm MirrorBit technology is designed to support a major extension to the Spansion Flash memory portfolio with the addition of a high performance, full-featured, 256Mbit 1.8-volt product for the wireless market. The planned feature set includes greater than 80MHz burst mode, fast access times and low energy consumption. Early silicon on this product, the Spansion S29WS256N device, is already in-house, with planned sampling in the first half of 2004.

“The far-sighted decision taken back in 2001 to convert Fab 25 from a logic fab to a dedicated Flash memory Fab is validated by the ramp in output from this Fab and the solid execution supporting 170nm in 2002, 130nm today and 110nm technology in 2004,” said Bertrand Cambou, CEO and President of FASL LLC. “The inclusion of Fab 25 in FASL LLC together with JV1, JV2 and JV3 doubles our total capacity through 2004, establishing a manufacturing powerhouse in Flash memory in support of our customers’ business growth.”

As a Flash facility, Fab 25 is on track to deliver greater than 30% higher wafer output in 2004 compared to its output as a logic fab, at greater than 40% lower wafer cost. The 128Mbit equivalent output on 110nm and 130nm from Fab 25 is planned to grow 8-fold by end of year 2004 compared to last quarter.

About Spansion™ Flash Memory Devices
Spansion™ Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. Spansion Flash memory customers represent leaders in the wireless, cellular, automotive, networking, telecommunications and consumer electronics markets. There are a variety of Spansion Flash memory products, such as devices based on the innovative MirrorBit™ technology; the award-winning simultaneous read-write (SRW) product family; super low-voltage 1.8 volt Flash memory devices; and burst- and page-mode devices. Information about Spansion Flash memory solutions is available at http://www.spansion.com/overview.

Spansion is the global product brand name of FASL LLC, a company formed by the integration of AMD's and Fujitsu’s Flash memory operations. FASL LLC is the largest NOR Flash memory company in the world based on dedicated resources that include gross assets having a net book value of approximately US$3 billion and approximately 7,000 employees. Spansion Flash memory solutions are available worldwide from AMD and Fujitsu.

On the Web
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Cautionary Statement
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include the possibility that demand for the company’s Flash memory products will be lower than currently expected, particularly in the wireless market; that customer acceptance of MirrorBit technology will not continue to increase; the company will not successfully ramp production of its Flash memory devices on 110-nanometer technology on the current schedule; and that the company may not achieve its current Flash memory product and technology introduction schedules. We urge investors to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 29, 2002, and the Quarterly Report on Form 10-Q for the quarter ended September 28, 2003.

Spansion, the Spansion logo, FASL, MirrorBit, and combinations thereof,are trademarks of FASL LLC. Other company and product names used in this publication are for identification purposes only and may be trademarks of their respective companies.