AMD, Fujitsu rejig flash memory business

BOTH AMD AND FUJITSU have had a joint flash memory venture going for years now, although the relationship has gone through its bumpy patches.

But the relationship has taken a fresh twist, with both companies deciding to merge their flash memory chip operations.

Under the terms of the deal, AMD will have 60 per cent stake in a new company - the idea is to take on the new giants in the industry, such as Samsung Electronics.

The conventional flash memory that AMD and Intel have been producing is still a bit of a cash cow, but as we reported recently, it's the wrong kind of flash.

The real growth area is in flash for digital cameras and the like, and the new venture is expected to turn over close to $1.5 billion a year.

The company will be called FASL LLC, and part of the reason for the closer tie up is because Fujitsu, formerly a giant amongst semiconductors, has been going through a very rough patch for some time.

We presume that the tie up also means that the argument between Fujitsu and AMD over a loan the Japanese company claimed the US company owed it, is also over, done and dusted.

* MEANWHILE, reports said that some AMD engineers are to get a new place to work in -- IBM's top fab at Fishkill.

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