AMD 1995 Annual Report Download - page 21
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In connection with FASL, AMD and Fujitsu have entered into various joint
development, cross-license and investment arrangements. Accordingly, AMD and
Fujitsu will provide their product designs and process and manufacturing
technologies to FASL. In addition, both companies will collaborate in
developing manufacturing processes and designing integrated circuits for FASL.
The right of each company to use the licensed intellectual property of the other
with respect to certain products is limited to certain geographic areas.
Consequently, AMD's ability to sell certain products incorporating Fujitsu
intellectual property, whether or not produced by FASL, is also limited in
certain territories, including the United Kingdom and Japan.
Foundries. AMD has foundry arrangements with third parties for the
production of products other than microprocessor and Flash products and may
increase its use of such foundry arrangements in the future.
If AMD is unable to generate sufficient manufacturing capabilities in its
own facilities or through foundry or similar arrangements with others, AMD may
not be able to produce sufficient products to meet demand. This could have an
adverse effect on AMD's results of operations. AMD anticipates that NexGen's
products and technology acquired in the Merger will eventually be manufactured
by AMD. There can be no assurance that AMD's manufacturing facilities and
processes will be compatible with the manufacturing of NexGen's products without
substantial reconfiguration, the timing of which might adversely affect the
results of AMD's operations and financial condition. If any substantial
interruption were to occur with respect to any of AMD's manufacturing
operations, either as a result of a labor dispute, equipment failure or other
cause, there could be a material adverse effect on AMD's results of operations.
AMD's operating results may also be materially adversely affected by
fluctuations in manufacturing yields.
Assembly and Testing. Nearly all product assembly and final testing are
performed at AMD's manufacturing facilities in Penang, Malaysia; Singapore; and
Bangkok, Thailand; or by
18
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996