AMD 1998 Annual Report Download - page 14

Production Approx.
Wafer Size Technology Clean Room
Facility Location (Diameter in Inches) (in Microns) (Square Footage)
----------------- ------------------- ----------- ---------------
Austin, TX
Fab 25................ 8 0.25 89,700
Fab 15(/1/)........... 6 0.7 22,000
Fab 14(/1/)........... 6 0.8 & 0.55 22,000
Fab 10(/2/)........... 5 0.9 22,000
Aizu-Wakamatsu, Japan
FASL(/3/)............. 8 0.35 & 0.5 70,000
FASL II(/3/).......... 8 0.35 91,000
Sunnyvale, CA
SDC................... 6 & 8 0.18 & 0.25 42,500
- --------
(1) We plan to consolidate the operations of Fab 14 and Fab 15 in 1999.
(2) Fab 10 decreased production levels and closed during 1998.
(3) We own 49.992 percent of FASL. Fujitsu owns 50.008 percent of FASL.
In 1997, FASL completed construction of a second manufacturing facility in
Aizu-Wakamatsu, Japan (FASL II) at a site contiguous to the existing FASL
facility. In 1998, equipment was installed and production was initiated in
FASL II. In addition, we commenced construction in the second quarter of 1997
of a manufacturing facility in Dresden, Germany (Dresden Fab 30), through AMD
Saxony Manufacturing GmbH (AMD Saxony), an indirect wholly owned German
subsidiary of AMD. At the end of 1997, we completed construction of the plant
and administration building for Dresden Fab 30, and in 1998 we installed
equipment in the building and began testing. We also have foundry arrangements
for the production of our products by third parties.
Our current assembly and test facilities are described in the chart set
forth below:
Approx.
Assembly & Test
Facility Location Square Footage Activity
----------------- --------------- ---------------
Penang, Malaysia............................. 377,000 Assembly & Test
Bangkok, Thailand............................ 78,000 Assembly & Test
Singapore.................................... 162,000 Test
In addition to the assembly and test facilities described above, we have
constructed an additional assembly and test facility in Suzhou, China. We
began operations in Suzhou in the first quarter of 1999. Foreign manufacturing
and construction of foreign facilities entails political and economic risks,
including political instability, expropriation, currency controls and
fluctuations, changes in freight and interest rates, and loss or modification
of exemptions for taxes and tariffs. For example, if we were unable to
assemble and test our products abroad, or if air transportation between the
United States and our overseas facilities were disrupted, there could be a
material adverse effect on our business.
Certain Material Agreements. Set forth below are descriptions of certain
material contractual relationships we have relating to FASL, Dresden Fab 30
and Motorola.
FASL. In 1993, we formed a joint venture with Fujitsu, FASL, for the
development and manufacture of Flash memory devices. Through FASL, the two
companies have constructed and are operating an advanced IC manufacturing
facility in Aizu-Wakamatsu, Japan, to produce Flash memory devices. The
facility began volume production in the first quarter of 1995, and utilizes
eight-inch wafer processing technologies capable of producing products with
geometrics of 0.5 micron or smaller.
11
Source: ADVANCED MICRO DEVIC, 10-K, March 29, 1999