AMD, Fujitsu may merge flash memory operations

AMD CONSIDERING a joint venture with Fujitsu that would overtake Intel to create the world's largest flash memory business, the FT reports.

According to the paper, the pair plan to establish a company in January in which AMD would take a 60 per cent stake and Fujitsu 40 per cent. The companies already have a shared flash memory firm in Japan -- Fujitsu AMD Semiconductor - producing flash memory products that each company markets separately.

A spokesman for Fujitsu played down the report, however. Although the companies are certainly in discussions, no decisions concerning the shape of the future relationship have yet been taken. "We've been saying consistently this has been a strong alliance and we want to strengthen it," Fujitsu spokesman Robert Pomeroy told Reuters.

"We are in talks with them all the time on how to do so, but as for what form the strengthening of our existing partnership will take and when that will happen, no decision has been made."

Yet the FT, without naming its sources, claims the new company would be an independent entity that AMD would consolidate, but Fujitsu would not. Both companies would contribute their intellectual property and interest in the operating facilities, says the report here.

The paper contends that AMD will incorporate its Fab 25, facility in Texas, into the deal. The Fab produces higher end, higher flash memory and in the jewel in AMD's flash headgear. µ