EXHIBIT 1 TO THE 8-K
Published on February 11, 1994
NEWS RELEASE (LOGO APPEARS HERE)
ADVANCED
MICRO
DEVICES
901 Thompson Place
P.O. Box 3453
Sunnyvale
CA 94088-3453
Tel (408) 732-2400
AMD AND DIGITAL ANNOUNCE FOUNDRY AGREEMENT
SUNNYVALE, CA ... February 7, 1994 ... Advanced Micro
Devices and Digital Equipment Corporation today announced an
agreement under which Digital trademark will become a foundry for
AMD's Am486 trademark microprocessor family. Digital will produce
wafers for AMD at its South Queensferry, Scotland,
manufacturing facility utilizing an adaptation of Digital's
0.68-micron process technology.
"The selection of Digital Equipment Corporation as a
foundry partner assures that AMD will have more production
capacity to meet growing customer demand for Am486
microprocessors," said W.J. Sanders III, chairman and chief
executive officer of AMD. "The participation of Digital
will further assure our customers that our products will
meet the highest standards of quality, performance and
reliability."
"As a merchant semiconductor vendor, this relationship
enables us to further capitalize on our investments in
leading-edge semiconductor process technology and
microprocessor manufacturing," said Robert B. Palmer,
president and chief executive officer of Digital. "This
agreement will enable Digital to produce increased volumes
in our South Queensferry fab, resulting in lower cost per
wafer for all of Digital's semiconductor products. Building
on our world-class semiconductor design and production
capabilities is a key part of our ongoing plan to return
Digital to sustained profitability."
(more)
The agreement is for two years with an option for
extension at the end of that period. Initial production
shipments of Am486 products from wafers manufactured by
Digital are expected to begin in the fourth quarter of 1994.
AMD expects that shipments of Am486 microprocessors
manufactured from die produced at the Digital facility will
reach an annual run-rate of 2,000,000 units in the first
half of 1995.
"From a long-term strategic perspective, this agreement
also assures that AMD will have added production capacity
for current and future generations of microprocessor
products," Mr. Sanders said. "With this foundry agreement,
we have the ability to allocate additional 0.5-micron
manufacturing capacity at our facility in Sunnyvale,
California, to production of both our high-performance Am486
devices and our fifth-generation K5 microprocessor products
in 1995," Mr. Sanders continued. "In effect, the Digital
foundry will provide a 'bridge' during the completion and
initial production ramp of our new sub 0.5-micron facility,
Fab 25 in Austin, Texas, thereby assuring that AMD will have
in place additional capacity to meet expected demand for our
most advanced microprocessor products," Mr. Sanders
concluded.
"Manufacturing the Am486 microprocessor at our Scotland
facility on the same line with our Alpha AXP trademark microprocessors
complements our own production plan," said Ed Caldwell,
Digital's vice president of Semiconductor Operations. "This
takes advantage of our high-yielding 0.68-micron process.
In addition, we will be migrating this facility to 0.5-
micron technology over the next year to boost performance
and output of both Alpha AXP and Am486 microprocessors."
(more)
Digital Equipment Corporation is the world's leader in
open client/server solutions from personal computing to
integrated worldwide information systems. Digital's
scalable Alpha AXP platforms, storage, networking, software
and services, together with industry-focused solutions from
business partners, help organizations compete and win in
today's global marketplace.
Advanced Micro Devices, Inc., the fifth-largest U.S.
manufacturer of integrated circuits, produces
microprocessors and related peripherals, memories,
programmable logic devices and circuits for
telecommunications, office automation and networking
applications. AMD has sales offices worldwide, and has
manufacturing facilities in Sunnyvale, California; Austin,
Texas; Bangkok, Thailand; Penang, Malaysia; Singapore;
and Basingstoke, England.
###
AMD news release #94CORP3 AMD-90178
For more information contact:
Advanced Micro Devices Digital Equipment Corporation
John Greenagel Lisa Lipson
(408) 749-3310 (508) 568-4352
Am486 is a trademark of Advanced Micro Devices, Inc.
Digital and Alpha AXP are trademarks of Digital Equipment
Corporation.