AMD-Fujitsu in potential flash memory spat

THE VERY GLOSSY AMD annual report has started plopping through shareholders' letter boxes with the firm highlighting the "1,000 days" of change that will arrive when the Hammer does.

And of course, the shareholders meeting is on April 25th at the St Regis Hotel in New York, which is when his majesty Jerry Sanders III steps down from his golden throne, and Hector Ruiz takes his place.

But there's a fly in this wonderful golden ointment and that's the AMD-Fujitsu (FASL) flash agreement.

Flash is vital to both AMD and to its Big Brother Intel - both hope that when the mobile phone market starts to recover, they will be able to milk the cash cow once more.

You will remember that Fujitsu wanted AMD to come to the rescue of the wafer fab at Gresham in Oregon. which made flash devices for sale to the joint venture, FASL.

AMD has guaranteed the repayment of up to $125 million of Fujitsu's line of credit to buy new equipment.

Fujitsu wants AMD to pay the whole $125 million due just a few days ago, but the X86 firm believes they're not responsible for the whole amount.

So this is a potential sticking point between the two companies which they'd better sort out sharpish, particularly as Fujitsu is more than a little strapped for cash right now.

And AMD also wants you shareholders to remember to vote for Ernst and Young as independent auditors of their accounts... There's a reason for its insistence on this point, and we'll sure it will come back to us sometime during the day. µ