AMD 1999 Annual Report Download - page 13

Manufacturing Facilities
Our current IC manufacturing facilities are described in the chart set forth
below:
Production
Technology Approximate
Wafer Size (in Clean Room
Facility Location (Diameter in Inches) Microns) (Square Footage)
----------------- -------------------- ----------- ----------------
Austin, Texas
Fab 25................... 8 0.18 120,000
Fab 14/15(1)............. 6 0.5 42,000
Aizu-Wakamatsu, Japan
FASL(2).................. 8 0.35 70,000
FASL II(2)............... 8 0.25 & 0.35 91,000
Sunnyvale, California
SDC...................... 8 0.18 & 0.25 42,500
--------
(1) We consolidated our Fab 14 and Fab 15 operations in 1999.
(2) We own 49.992 percent of FASL. Fujitsu owns 50.008 percent of FASL.
AMD Saxony Manufacturing GmbH, an indirect wholly owned German subsidiary of
AMD, has constructed and is installing equipment in Dresden Fab 30, a 900,000-
square-foot submicron integrated circuit manufacturing and design facility
located in Dresden, in the State of Saxony, Germany. The building construction
of FASL II, a second Flash manufacturing facility, was completed, equipment
was installed and production was initiated in 1999. 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:
Approximate
Assembly & Test
Facility Location Square Footage Activity
----------------- --------------- ---------------
Penang, Malaysia............................. 377,000 Assembly & Test
Bangkok, Thailand............................ 78,000 Assembly & Test
Singapore.................................... 162,000 Test
Suzhou, China................................ 30,250 Assembly & Test
We began operations in our new assembly and test facility in Suzhou during
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 FASL, a joint venture with Fujitsu, for the
development and manufacture of Flash memory devices. FASL operates two
advanced IC manufacturing facilities in Aizu-Wakamatsu, Japan, for the
production of Flash memory devices. FASL began volume production in the first
quarter of 1995, and utilizes eight-inch wafer processing technologies capable
of producing products with geometrics of .35 micron or smaller. FASL II began
volume production in 1999, and utilizes eight-inch wafer processing
technologies.
We expect FASL II, including equipment, to cost approximately $1 billion
(denominated in yen) when fully equipped. Capital expenditures for FASL II
construction to date have been funded by cash generated from FASL operations
and local borrowings by FASL. To the extent that FASL is unable to secure the
necessary funds for FASL II, we may be required to contribute cash or
guarantee third-party loans in proportion to our 49.992 percent interest in
FASL. As of December 26, 1999, we had loan guarantees of $2 million
(denominated in yen)
9
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 2000