AMD 2000 Annual Report Download - page 14

Manufacturing Facilities
Our current IC manufacturing facilities are described in the chart set
forth below:
Production Approximate
Wafer Size Technology Clean Room
Facility Location (Diameter in Inches) (in Microns) (Square Footage)
----------------- -------------------- ------------ ----------------
Austin, Texas
Fab 25....................................... 8 0.18 120,000
Fab 14/15.................................... 6 0.5 42,000
Aizu-Wakamatsu, Japan
FASL JV1 (1)................................. 8 0.35 70,000
FASL JV2 (1)................................. 8 0.25 & 0.35 91,000
Dresden, Germany
Fab 30....................................... 8 0.18 115,100
__________
(1) We own 49.992 percent of FASL. Fujitsu owns 50.008 percent of FASL.
In July 2000, FASL broke ground for a third fabrication facility, FASL JV3,
for the manufacture of Flash memory devices in Aizu-Wakamatsu. As of December
31, 2000, the building was complete and the clean room was under construction.
We also have foundry arrangements for the production of our products by third
parties.
Our Submicron Development Center is a 42,000 square foot research and
development facility located in Sunnyvale, California.
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
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 advanced IC
manufacturing facilities in Aizu-Wakamatsu, Japan (FASL JV1 and FASL JV2), for
the production of Flash memory devices. FASL JV1 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 is
continuing the facilitization of FASL JV2, which began volume production in
1999, and also utilizes eight-inch wafer processing technologies.
FASL JV3, described above under "Manufacturing Facilities," is expected to
cost approximately $1.5 billion when fully equipped. Capital expenditures for
FASL JV2 and FASL JV3 construction to date have been funded by cash generated
from FASL operations and local borrowings by FASL. However, to the extent that
FASL is unable to secure the necessary funds for FASL JV2 and FASL JV3, 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 31, 2000, we had $38 million
in loan guarantees outstanding with respect to these loans. These planned costs
are denominated in yen and are, therefore, subject to change due to foreign
exchange rate fluctuations. At the end of 2000, the exchange rate was
approximately 112.52 yen to one U.S. dollar.
In connection with FASL, AMD and Fujitsu have entered into various joint
development, cross-license and investment arrangements. Pursuant to these
agreements, the companies are providing their product designs and process and
manufacturing technologies to FASL. In addition, both companies are
collaborating in developing manufacturing processes and designing Flash memory
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001