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AMD to buy Fujitsu Flash plant?

Companies discuss Oregon facility's future

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AMD and Fujitsu are negotiating the sale of the Japanese chip maker's Oregon-based Flash memory fab, Japanese paper Nihon Keizai has reported.

The plant - Fujitsu's only facility outside Japan, according to Reuters - supplies Flash chips to a Fujitsu-AMD joint venture. With the collapse in global Flash demand, the product of the slump in sales of networking hardware and cellphones, Fujitsu apparently wants rid of the plant, the paper claims.

Fujitsu has already said it plans to temporarily suspend production at its Japanese Flash facilities in August and September.

For its part, AMD hasn't been immune to the downturn in the Flash market. The sales slump was largely responsible for a 16 per cent fall in revenue in the chip maker's most recently completed fiscal quarter.

That said, it may not want to see the plant closed, and its discussions with Fujitsu may well centre on its acquisition of the plant. Other options include the sale of the facility to a third party, or its closure. ®

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