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Fujitsu, AMD To Build Chip Plant

May 23, 2000

TOKYO (AP) _ Japan’s Fujitsu Ltd. and Advanced Micro Devices Inc. of the United States plan to spend about $1.31 billion to build a plant in Japan to produce flash-memory chips.

Fujitsu and Sunnyvale, Calif.-based AMD now operate two Japanese chipmaking facilities together under a joint venture.

Construction on the new plant in northeastern Japan will begin in August, Fujitsu announced Tuesday. It is set to come on line next February and will produce as many as 13 million flash memory chips per month by March 2002. Plans call for boosting monthly output to 52 million chips by March 2003.

Flash memory chips are used in popular consumer electronics items such as digital cameras and digital videodiscs.

Fujitsu said demand for the chips is outstripping supply, especially because of booming sales in Japan of cellular phones.

``We predict that the worldwide flash memory chip market will grow by 91 percent this year,″ to about $8.42 billion, said Fujitsu executive Hirofumi Takeda.

The new plant will be about 150 miles northeast of Tokyo.

It will primarily produce chips witbh a capacity of 16 megabits of memory.

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