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Spansion Reaches Significant Milestone at Industry's First 300mm NOR Wafer Fab | Cypress Semiconductor

Spansion Reaches Significant Milestone at Industry's First 300mm NOR Wafer Fab

Last Updated: March 06, 2008

Fab reaches over 25,000 wafer-starts per quarter; key customers qualifying leading-edge 65nm solutions

SUNNYVALE, Calif. and AIZU-WAKAMATSU, Japan, March 6, 2008 -- Spansion Inc. (Nasdaq: SPSN), the world's largest pure-play provider of Flash memory solutions, today announced that it has reached a level of more than 25,000 wafer-starts per quarter at its Spansion 1 (SP1) facility in Japan, the world's first 300mm, 65nm MirrorBit(R) technology Flash memory manufacturing fab. A number of Spansion's top customers are already in the process of qualifying products at SP1, including leading-edge 65nm products, such as MirrorBit Eclipse(TM) devices.

"This is a significant milestone for the Flash memory industry and we expect it will provide important benefits for our overall business," said Bertrand Cambou, president and CEO, Spansion. "With this leading-edge facility, and the cost and technology advantages of MirrorBit technology, we are delivering on our promise to bring more value to our customers and stockholders. We expect that this production ramp should rapidly reduce our reliance on external foundries and older technology nodes, giving Spansion greater capacity with attractive cost structures for our target segments."

Spansion is the first company to produce next-generation NOR Flash memory technology on 300mm wafers. A 300mm fab usually gives about a 30 percent cost reduction over 200mm, according to Jim Handy, a principal analyst with Objective Analysis.

"Ramping production at SP1 is tremendously important -- it enables Spansion to produce MirrorBit wafer products with a lower cost structure, which in turn makes it a more efficient competitor," said Handy. "There are a number of companies that have tried getting into that and have had a problem with it."

SP1 is integral to Spansion's strategy to produce leading-edge differentiated Flash memory solutions. MirrorBit technology offers higher yields and scales more easily to higher densities than the traditional floating-gate NOR technology being used by Spansion's competitors. SP1 is co-located with Spansion's other fab in Aizu, JV3, and shares some resources with JV3 such as employees and facilities. The SP1 wafer manufacturing site is the first factory constructed by Spansion since becoming an independent company. Plans for SP1 include an aggressive migration plan to 45nm next year, which is expected to provide additional cost efficiencies.

     Key Facts about SP1
     Building Structure: Three-story building
     Site Area: 123,515m2(SP1 + JV3)
     Floor Area: 36,482m2
     Area of Clean Room: 13,800m2
     Products Produced:  MirrorBit products at 65nm in 2008; MirrorBit
     products at 45nm in 2009
     Location: 2, Takaku-Kogyodanchi, Aizuwakamatsu-shi, Fukushima, 965-0060
     Manufacturing Employees: Approximately 950 full-time employees
     (SP1 + JV3)

About Spansion

Spansion is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing and selling Flash memory solutions. For more information, visit

Cautionary Statement

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding cost reductions, reduced reliance on external foundries, lower cost structure, and plans to migrate SP1 to 45nm and associated additional cost efficiencies. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. For risks that the Company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements, the Company urges investors to review in detail the risks and uncertainties in the Company's Securities and Exchange Commission filings, including but not limited to the company's Annual Report on Form 10-K for the fiscal year ended December 30, 2007.

Spansion(R), the Spansion Logo(R), MirrorBit(R), MirrorBit(R) Eclipse(TM), ORNAND(TM), ORNAND2(TM), HD-SIM(TM) and combinations thereof, are trademarks of Spansion LLC. Spansion, the Spansion Logo and MirrorBit are registered in the US and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.

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