AMD and Fujitsu have signed a Memorandum of Understanding (MOU) to establish a new flash memory semiconductor company called FASL LLC.
With headquarters in Sunnyvale, CA, the new company will be based on the integration of AMD’s and Fujitsu’s flash memory businesses, including their existing joint manufacturing venture, Fujitsu AMD Semiconductor.
AMD will own a 60% interest in the new company and Fujitsu will own a 40% interest. The financial results will be consolidated in AMD’s financial statements.
Bertrand Cambou, senior vice president of AMD’s memory group will be the CEO of the company and Fujitsu’s Masamichi Ogura, the corporate senior vice president and group president of Fujitsu’s electronic devices business group, will be the first chairman of the board.
The new company will sell flash memory products through AMD and Fujitsu and their respective sales forces, under a product brand name to be announced when the new company starts its operations.
AMD expects to contribute its flash memory group to the new venture as well as its Fab 25 facility in Austin, TX, its research and development centre known as the Submicron Development Center (SDC) in Sunnyvale, CA, and its final flash memory assembly and test operations in Thailand, Malaysia and China.
Fujitsu plans to contribute its flash memory business division and its Fujitsu Microelectronics final assembly and test operations in Malaysia.
Fujitsu and AMD plan to jointly contribute their ongoing 50-50 manufacturing joint venture Fujitsu AMD Semiconductor Limited (FASL) located in Aizu-Wakamatsu, Japan.
The new company is expected to begin operations in the third quarter of this year with an initial global workforce of approximately 7,000.