AMD and Fujistu join to give global flash

Advanced Micro Devices and Fujitsu have decided to consolidate resources in a new joint venture to boost the companies’ position in the flash memory market.

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By  Paul Barthram Published  April 1, 2003

Advanced Micro Devices and Fujitsu have decided to consolidate resources in a new joint venture to boost the companies’ position in the flash memory market.

Currently ranked numbers two and five as flash memory providers, AMD and Fujitsu are to merge operations this year to generate a joint product to compete with the market leader Intel.

The venture has been announced following increased competition in the market from companies such as Samsung, which announced its intentions in January to more than double its flash production next year.

“We expect the new company to be the strong number two player in the flash market,” said Hector Ruiz, AMD’s chief executive.

AMD and Fujitsu have been partners, jointly developing flash memory chips used in phones and other portable devices, which retain data without an electrical current for the past 10 years. But this is the first time they will not be competing against each other in foreign markets.

The two companies previous collaboration, Fujitsu-AMD Semiconductor Limited will now combine flash memory resources under the new FASL venture. The company is expected to have a combined net book value of $2.5 billion, and will see huge benefits from a joint sales and marketing push for the new product.

AMD is expected to own 60% of the partnership, while Fujitsu will operate the remaining 40% of FASL. No name has been released for the product just yet but AMD senior vice president Bertrand Cambou will be heading up the company.

AMD and Fujitsu will be the sole distributors of the flash memory chips produced by FASL in most parts of the world, which they plan to see on the market within a year. There is no word as yet how they expect to tackle the Middle East market.

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