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AMD-Fujitsu Spansion (ex-FASL) News - 11/08/04
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The result of a uniquely structured international joint venture known as Fujitsu AMD Semiconductor Limited (Spansion), 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.

The first Spansion 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.

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.

In July of 2000, Spansion 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.

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Spansion Unveils MirrorBit Product Road Map Scaling to 8-Gbit Flash Memory on 65nm Lithography

MirrorBit technology centerpiece of plan to become overall Flash market leader -

SUNNYVALE, Calif. - November 8, 2004 - Today
Spansion LLC, the Flash memory subsidiary of AMD and Fujitsu Limited, laid out an ambitious three-year vision and strategic road map, outlining plans to scale its MirrorBit technology to 8-gigabit densities on 65-nanometer lithography to meet the growing demands of the entire Flash market - from wireless handsets and embedded systems to detachable cards and USB drives. In addition, the company announced plans to develop a new "ORNAND" Flash memory architecture that brings together the best of NOR code execution and NAND data storage capabilities in a single product based on MirrorBit technology.

MirrorBit technology is Spansion's competitive weapon and affords us the versatility to serve the entire Flash memory market," said Dr. Bertrand Cambou, president and CEO of Spansion. "Our upcoming MirrorBit products are designed to transcend the NOR versus NAND debate and provide our customers with optimal solutions for both code and data storage. With innovations such as Spansion's ORNAND architecture, we can enable our customers to create highly differentiated systems or even invent entirely new product categories."

Spansion's newly announced product road map is expected to extend the reach of MirrorBit technology to encompass the complete range of densities, performance, cost and reliability required by the overall Flash memory market. Spansion plans to sample the industry's first 90-nanometer 1-gigabit NOR device and new mass data storage products for mobile phones(1) in early 2005. With further scaling to 8-gigabits by 2007, the company's MirrorBit product line is expected to eventually include the complete range of densities and solutions required by Spansion customers.

"Now that
Spansion has been able to solve some of the inherent scaling and performance problems with nitride-based technology, its new 'ORNAND' architecture is truly a breakthrough," said Alan Niebel, CEO and founder of semiconductor market analysis firm Web-Feet Research. "Being able to add additional features and performance to high-density Flash while reducing cost will help secure Spansion's success in the removable data storage market. Today, the Flash memory market is roughly divided between NOR and NAND technology. Spansion's strategy to create a new ORNAND architecture that transcends traditional boundaries of memory and storage presents an opportunity for customers to significantly extend the capabilities of next generation of digital devices."

The first of
Spansion's new ORNAND products is expected to become available in 2005 with burst-write speeds up to four times faster than current NAND products, and all the inherent benefits of MirrorBit NOR technology, including high reliability, fast read speeds and low cost. By 2007, Spansion plans to offer a full portfolio of ORNAND products scaling to 8-gigabit densities. As a result, Spansion expects MirrorBit technology to serve the anticipated $8.9 billion per year data storage market(2) previously served primarily by floating-gate NAND-type products.

MirrorBit technology is ideally suited for new applications beyond traditional memory as well. Because MirrorBit process technology is logic-friendly, Spansion can integrate blocks of logic within high-density arrays of Flash memory. This fundamental capability enables
Spansion to create new types of memory solutions, based on the ORNAND architecture, that incorporate logic functions like high-security cryptographic processors or integrated memory controllers, to bring more value to customers.

Spansion's award-winning MirrorBit technology is a comparatively simple but powerful approach to Flash memory, with the unique ability to store two or more bits of data in a single Flash memory cell. The company has also demonstrated MirrorBit technology's ability to quadruple densities with a working proof-of-concept "QuadBit" test chip in its state-of-the-art Submicron Development Center. In addition, Spansion has a working test chip prototype based on
65-nanometer MirrorBit technology, proving the technology's scalability to smaller process geometries.

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 that AMD will not be able to meet demand for its Flash memory products; that the company may not achieve its current 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 28, 2003.

About Spansion LLC
Spansion, the Flash memory subsidiary of AMD (NYSE:AMD) and Fujitsu (TSE:6702), is the world’s leading manufacturer of NOR Flash memory.
Spansion Flash memory is used by leaders in the wireless, cellular, automotive, networking, telecommunications and consumer electronics markets. Spansion offers the industry’s broadest Flash memory portfolio, including 5-, 3-, and 1.8-volt products from 1 to 512 Mbits in single-die and multi-chip product (MCP) configurations. Spansion engineering innovations, such as the award-winning MirrorBit technology and simultaneous read-write (SRW) architecture, continue to advance the state of the art.

To address global consumer desire for Flash-enabled products, Spansion operates four dedicated commercial Flash fabs and four dedicated Flash assembly sites around the world. All Spansion production fabs are certified to the demanding ISO/TS16949 and ISO9001:2000 quality standards and the ISO14001 environmental standard. Spansion operates a world-class development fab to accelerate the introduction of next-generation technologies.

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.