AMD, Fujitsu to Form Flash Memory Company
Duo says new company will better respond to changes in demand for flash memory chips, used in cell phones and PDAs.Advanced Micro Devices Inc. and Fujitsu Ltd., partners in flash memory development since 1993, are combining their respective flash memory businesses to create a new company. In announcing a memorandum of understanding Monday, executives from both companies said the new business, which will be called FASL LLC and based in Sunnyvale, Calif., will boost their profile in the flash memory space, will speed up research and development initiatives and will increase the time to market for new products. Officials said that they expect the new company will be the number two player in the space behind Intel Corp. The new company will also be more nimble and flexible to respond to changes in demand for flash memory chips, which are used in wireless products such as cell phones and PDAs.
"AMD and Fujitsu will contribute their entire flash memory businesses" to FASL, said AMD President and Chairman Hector Ruiz. The new business name is the acronym for the companies current joint manufacturing initiative, Fujitsu AMD Semiconductor Limited, based in Aizu-Wakamatsu, Japan.