building partnerships to compete in the global economy
TRANSCRIPT
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Building Partnerships to Compete in a Global Economy
Alliance for Innovative Manufacturing
Jim Doran, Executive Vice PresidentApril 6, 2004
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Current Events– The new, broader partnership – Spansion– What technology development and manufacturing looks like today
Outline
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
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What does AMD Make?
•Micro Processors– Athlon– Opteron
Devices that Devices that processprocess information information
• Flash Memory– Spansion
• Personal Connectivity Solutions
Devices that Devices that storestore information information
Devices that Devices that connectconnect the information the information
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CPG – Develops and delivers world-class computing solutions…
Simplifying Business
Simply the best PC Processor
SERVER & WORKSTATION
DESKTOPMOBILE
The most advanced PC processor for
notebook computing
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…provided by the industry’s leading system manufacturers…
SERVER &WORKSTATION
DESKTOPMOBILE
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…winning awards and satisfying customers around the globe.
SERVER &WORKSTATION
DESKTOPMOBILE
SERVER &WORKSTATION
DESKTOPMOBILE
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AMD is Leading the Industryto Pervasive 64-bit Computing
AMD6432-bit
64-bit
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Flash MemoryFlash Memory
Flash is a special technology
Flash gives products their innate intelligence
I.Q. is proportional to amount of Flash content
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Flash is ubiquitous
IndustrialApplication
Plug in the wall Portabl
e
ConsumerApplication
Handheld PCs & PDAs
Portable Inventory System
Television Set Top Box
GPSNavigation
Automotive Powertrain
Control
Laptop PCs
Automotive Telematics & Infotainment
GameMachines
PCs and Peripherals
Broadband Modem
Internet Routers
Avionics and Instrument
Controls
Enterprise Telecom
Telco Switches
Industrial Controller
Cellular Telephone
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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
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JV1
JV2
JV1/JV2
8.24 . 2001
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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
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AMD Thailand Bird’s Eye ViewBangkok facility
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05/01/23 141995
1990
2000
2005
2010
$1B
$2B
$3B
$4B
Flash Revenue FASL
AMDR&D
Process TechnologyDesign
FujitsuManufacturing
CapitalMfg. expertise
Competition Intensifies
CompetitorsIntel
SamsungSTM
Others…
TechnologiesNOR
NANDEmerging
Technologies…
Cost IncreasingR&D
Capital
FASL LLCCombined Resources
R&DManufacturingManagement
MarketingAssets >$2.5BEmployees >7K
1993 2003
ChallengeIncrease
competitiveness by combining
resources
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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
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The Operations Organization
Technology Development
Memory Technology Development and Manufacturing
Sub Micron Development
Center
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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
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FAB Problem Solving at the Atomic Level
50 atoms
Void defect
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CS79 90nm Floating Gate Technology
•Stacked gate and contact 1
•Dual damascene Cu BEOL before Cu polish
Poly2 Poly2
Poly1 Poly1
Contact 1
Contact2
Metal2
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The Operations Organization
Technology Development
Memory Technology Development and Manufacturing
Wafer Fab
Sub Micron Development
Center
Fab 25 Austin
FASL Japan
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JV3
8.24.2001
JV3
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The Operations Organization
Technology Development
Memory Technology Development and Manufacturing
Wafer FabAssembly, Test, Mark and Pack
Sub Micron Development
Center
Fab 25 Austin
PenangBangkokSuzhou
Kuala Lumpur
FASL Japan
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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