AMD and Chartered sign sourcing and manufacturing technology agreements
Chartered Adopts AMD's Automated Precision Manufacturing (APM), Plans to Manufacture AMD64 Processors in 2006SUNNYVALE, CALIF. AND SINGAPORE-NOV. 9, 2004
- AMD (NYSE: AMD) and Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED) today announced they have entered into sourcing and manufacturing technology agreements whereby Chartered will implement under license portions of AMD's Automated Precision Manufacturing (APM) software suite and become an additional manufacturing source of AMD64 microprocessors.
With the success of the AMD64 architecture and AMD's plans for future growth, AMD is lining up additional incremental capacity to augment its production at its state-of-the-art site in Dresden, Germany. AMD will use this capacity to meet the expanding end-customer demands for AMD Athlon 64 and AMD Opteron processor-based systems. AMD plans to have Chartered begin production in 2006.
"This is another milestone in driving the market to pervasive 64-bit computing," said Dirk Meyer, executive vice president, Computation Products Group, AMD. "AMD has industry-leading price/performance capabilities, outstanding stability and investment protection in our CPUs, the best technology, and now with this relationship, the incremental capacity to fulfill our planned volume demands. We believe that all of our customers around the globe will benefit from this relationship."
"Chartered's already strong capabilities, enhanced with the speed, accuracy and agility of APM, will help Chartered attain a rapid AMD64 product production ramp with high yields and high quality," said Gary Heerssen, senior vice president, Corporate Manufacturing Group, AMD. "Our plans for AMD Fab 36, which is currently under construction, remain unchanged. We intend it to be our benchmark facility for the manufacture of AMD64 products."
"We are pleased to become a qualified manufacturer of AMD's industry-leading 64-bit microprocessor designs. This reflects growing confidence in Chartered's leading-edge capabilities and our unique foundry position," said Kay Chai "KC" Ang, senior vice president of fab operations at Chartered. "To build the world's most advanced chips, you need the world's most advanced manufacturing capabilities. The implementation of AMD's Automated Precision Manufacturing will be a fundamental enabler of our success with AMD64 products while providing access to AMD manufacturing innovation to the advantage of all our 300mm customers."
Chartered will begin integrating APM into Fab 7, its 300mm wafer fabrication facility in Singapore, starting in the fourth quarter of 2004.About APM
AMD's complete APM suite is made up of over 300 patented and patent-pending technologies that provide for dynamic, real-time adjustments to production processes. APM helps reduce time-to-yield on new technologies, improve overall wafer yields and decrease manufacturing costs.
Serving as a fab's "central nervous system," APM forms an integrated fabric of communication and control linkages with the hundreds of tools throughout the plant. This sophisticated and highly integrated data infrastructure constantly monitors the health of microprocessors in production by collecting and analyzing information from the tool-sets as wafers enter and exit them for processing.
Using proprietary real-time analysis algorithms, APM automatically and consistently recommends changes to the complex recipes used within each tool. In this way, APM optimizes the process for each set of materials, based on the unique history and health-state of both the tools and the materials, in order to ensure the final chips perform to targeted specifications and are defect free.About AMD
AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to helping its customers deliver standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information, visit www.amd.com
Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer markets. In Singapore, Chartered operates four fabrication facilities and has a fifth fab, the company's first 300mm facility, which is expected to begin pilot production by the end of 2004.
A company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Information about Chartered can be found at http://www.charteredsemi.com
.AMD, the AMD Arrow logo, AMD Athlon, AMD Opteron, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "plans," "expects," "believes," "anticipates" or "intends."
With respect to AMD, forward-looking statements include, without limitation, statements relating to the success of AMD64 architecture, customer and market demand for AMD Athlon 64 and AMD Opteron processors, and AMD's capacity plans related to anticipated volume demands for its AMD64-based processors. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include, without limitation, the possibility that AMD will not achieve its current product and technology introduction schedules; that adoption of AMD64 products by tier-one OEMs and other customers will not occur as expected; that solutions providers will not timely provide the infrastructure, including operating systems and applications, to support its AMD64 technology; and that Intel Corporation's pricing, marketing programs, product bundling, new product introductions or other activities targeting the company's processor business will adversely affect the company's sales plans. In addition to the foregoing risks and uncertainties, AMD urges investors to review in detail the risks and uncertainties in its Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended September 26, 2004.
With respect to Chartered, forward-looking statements include, without limitation, statements relating to Chartered's collaborative efforts and manufacturing activities with AMD, including the expected production date; the integration of AMD's Automated Precision Manufacturing in Chartered's Fab 7 fabrication facility, including the time scheduled for integration activities to begin and the impact on Chartered's manufacturing capabilities. These statements reflect Chartered's current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are: the successful implementation of Chartered's collaborative efforts and manufacturing activities with AMD; unforeseen delays or interruptions in Chartered's plans for Fab 7 and its other fabrication facilities; the performance level of and technology mix in Chartered's fabrication facilities; Chartered's progress on leading edge products; unavailability of materials and equipment changes in market outlook and trends; economic conditions in the United States as well as globally; customer demands and competition. In addition to the foregoing factors, a description of certain other risks and uncertainties that could cause actual results to differ materially can be found in the section captioned "Risk Factors" in Chartered's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission.
You are cautioned not to place undue reliance on the forward-looking statements contained in this release. Neither party undertakes any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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