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Building Partnerships to Compete in a Global Economy Alliance for Innovative Manufacturing Jim Doran, Executive Vice President April 6, 2004 Outline Current Events The new, broader partnership – Spansion What technology development and manufacturing looks like today
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Building Partnerships to Compete in a Global Economy Alliance for Innovative Manufacturing Jim Doran, Executive Vice President April 6, 2004
Outline Current Events • The new, broader partnership – Spansion • What technology development and manufacturing looks like today Building global partnerships to compete in Flash memory Some background • What does AMD make? • What is Flash memory and why is it so exciting? Early partnerships • The original joint venture with Fujitsu • Early operations in Asia
What does AMD Make? • Micro Processors • Athlon • Opteron Devices that process information • Flash Memory • Spansion Devices that store information • Personal Connectivity Solutions Devices that connect the information
CPG – Develops and delivers world-class computing solutions… SERVER & WORKSTATION MOBILE DESKTOP Simplifying Business The most advanced PC processor for notebook computing Simply the best PC Processor
…provided by the industry’s leading system manufacturers… SERVER & WORKSTATION MOBILE DESKTOP
…winning awards and satisfying customers around the globe. SERVER & WORKSTATION SERVER & WORKSTATION MOBILE MOBILE DESKTOP DESKTOP
64-bit AMD64 32-bit AMD is Leading the Industryto Pervasive 64-bit Computing
Flash Memory Flash is a special technology Flash gives products their innate intelligence I.Q. is proportional to amount of Flash content
Flash is ubiquitous Plug in the wall Portable Industrial Application Avionics and Instrument Controls Portable Inventory System Industrial Controller Automotive Powertrain Control Automotive Telematics & Infotainment Internet Routers Telco Switches GPSNavigation Enterprise Telecom Broadband Modem Cellular Telephone Laptop PCs Television Set Top Box Handheld PCs & PDAs GameMachines PCs and Peripherals Consumer Application
Early Partnerships in Flash Memory…Wafer Fabs Fujitsu provided • Capital to build new wafer fabs • Manufacturing expertise AMD provided • Proven technology to build Flash memory • Design expertise Result • New “JV” fabs to produce Flash memory • Output split by AMD and Fujitsu
JV1/JV2 JV2 JV1 8.24.2001
Early Partnerships in Flash Memory…Final Manufacturing Result • Assembly plants in Malaysia and Thailand Asia provided • Low cost labor • Government support AMD provided • Jobs • Products and technology
AMD Thailand Bird’s Eye View Bangkok facility
$4B FASL LLC Combined Resources R&D Manufacturing Management Marketing Assets >$2.5B Employees >7K Challenge Increase competitiveness by combining resources Flash Revenue $3B $2B FASL Competition Intensifies Cost Increasing R&D Capital AMD R&D Process Technology Design Fujitsu Manufacturing Capital Mfg. expertise Competitors Intel Samsung STM Others… Technologies NOR NAND Emerging Technologies… $1B 1993 2003 1990 1995 2000 2005 2010
Today’s Partnerships in Flash Memory Both AMD and Fujitsu now provide • Technology expertise • Manufacturing expertise • Design expertise • Financial support • Access to markets • Fujitsu strong in Japan and Asia • AMD strong in Europe, US and Asia Asia now provides • Lower cost labor • Improved access to markets (China) • Engineering expertise
The Operations Organization Memory Technology Development and Manufacturing Technology Development Sub Micron Development Center
Building a Leading Technology • Process technology R&D starts in the SDC • Research in next generation process technology • Lithography • Material science • Interconnect • Analysis and diagnostic techniques • Focus on technologies for… • Flash memories • NOR • Mirror Bit • Future
FAB Problem Solving at the Atomic Level Void defect 50 atoms
CS79 90nm Floating Gate Technology • Stacked gate and contact 1 Contact 1 Metal2 Poly2 Poly2 Poly1 Poly1 Contact2 • Dual damascene Cu BEOL before Cu polish
The Operations Organization Memory Technology Development and Manufacturing Technology Development Wafer Fab FASL Japan Fab 25 Austin Sub Micron Development Center
JV3 JV3 8.24.2001
The Operations Organization Memory Technology Development and Manufacturing Assembly, Test, Mark and Pack Technology Development Wafer Fab FASL Japan Fab 25 Austin Sub Micron Development Center Penang Bangkok Suzhou Kuala Lumpur
Some Conclusions Good partnerships can help build global competitiveness • Improve access to capital • Provide complementary skills • Technology / manufacturing • Access to different markets Partnerships work best when • Both partners provide something • Both partners benefit • Both partners • Have common goal • Build trust and relationships • Can evolve their partnership over time