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AMD-Fujitsu Spansion News - 09/02/04
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Two better than one!
Fujitsu AMD Semiconductor Limited (FASL) now Spansion LLC.
FASL Takaku plant
Spansion Named Top NOR Flash Supplier in First Half 2004,
Reports iSuppli


Officially Changes Name to Spansion LLC

SUNNYVALE, CA – September 2, 2004 –
Spansion LLC, the Flash memory subsidiary of Advanced Micro Devices, Inc. (NYSE: AMD) and Fujitsu Limited (TSE: 6072), continued to lead the NOR Flash industry during the first half of 2004 with a nearly 27% market share, six points higher than the next nearest competitor, according to a new report by market analysis firm iSuppli, El Segundo, CA.

"Customers in both the mobile-phone market and in the broad market need a NOR Flash memory supplier that can offer a full portfolio of products across all densities," said Betsy Van Hees, principal analyst for flash memory at iSuppli. "They also need a supplier that can deliver cost-competitive NOR flash memory products that offer a clear migration path, that deliver cost benefits to the end customer and that allow the supplier to maintain price-performance leadership."

Key to
Spansion’s ascendancy has been its ability to produce a broad range of Flash memory devices and the introduction of its innovative MirrorBitTM technology, which enables dramatically reduced production costs and gives Spansion a significant competitive advantage.
 
MirrorBit technology is a comparatively simple but powerful approach to storing two bits of data in a single Flash memory cell using a fundamentally different and more efficient technology compared to other solutions. Moreover, the nature of MirrorBit technology allows the company to manufacture it so efficiently that Spansion now offers the highest NOR Flash device densities in the industry at 512 Mb.
 
MirrorBit technology gives handheld device manufacturers the next-generation Flash memory architecture they need to produce affordable and feature rich mobile products that allow consumers to run advanced software applications, play stunning 3D games, take ultra high resolution pictures and videos, and conduct real-time video calls to friends, family and business associates.

In conjunction with this first-year success, the company also announced it has officially changed its name from FASL LLC to
Spansion LLC.

















About Spansion LLC
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.

Spansion was formed by the integration of AMD's and Fujitsu's Flash memory operations in 2003. It is the largest NOR Flash memory company in the world. Spansion Flash memory solutions are available worldwide from AMD (NYSE:AMD) and Fujitsu (TSE:6702).

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 uncertainties 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 and that the company will not be able to maintain or increase its Flash memory market share; that customer acceptance of MirrorBit technology will not continue to increase; that the company will not continue to be successful integrating the Flash memory operations of Spansion LLC, or be able to achieve or sustain any benefit from its creation; that the company will not be able to meet demand for its Flash memory products. 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 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended June 27, 2004.  
 
Spansion, the Spansion logo, MirrorBit, and combinations thereof are trademarks of Spansion LLC. Other names are for informational purposes only and may be trademarks of their respective owners.
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The result of a uniquely structured international joint venture known as Fujitsu AMD Semiconductor Limited (FASL), the current facilities in Aizu-Wakamatsu are dedicated to volume production of Flash memory devices, and combined are capable of processing more than 20,000 eight-inch wafers per week utilizing the most advanced processes.

JV1
The first FASL facility (JV1) commenced volume production of 4- and 16-megabit Flash memory chips on 0.5-micron technology in the fourth quarter of 1994. Since then, the facility has migrated to 0.32 and 0.23-micron technology. The JV1 facility includes 65,950 square feet of Class 1 clean room space housed in a 276,000 square-foot building.

JV2
Groundbreaking for the second joint-venture facility (JV2) occurred in March of 1996, and first shipments began in the fourth quarter of 1997. The 300,300 square-foot facility includes approximately 89,700 square feet of Class 1 clean room space, and uses an advanced 0.23-micron process technology.

JV3
In July of 2000, FASL broke ground for its third Flash memory fab in Aizu-Wakamatsu. FASL Fab JV3 is now producing advanced Flash memory devices on 0.17 micron technology. This $1.5 billion facility encompasses 110,000 square feet of clean room space. JV3 encompasses 459,000 total square feet, including a shell for future expansion that can accommodate
12 inch (300mm) wafer production.
Rank Supplier Market Share
1 Spansion 27.30%
2 Intel 18.10%
3 ST Microelectronics 12.30%
4 Sharp Electronics 11.50%
5 Toshiba 5.40%
6 Renesas Technology 5.00%
7 Silicon Storage Technology 4.50%
8 Samsung 3.90%
9 Macronix International 3.50%
- All others combined 9.50%
Source: iSuppli Market Analysis (September 2004)