AMD, TI report strong demand for flash ADSL chips

AMD received a key endorsement for its flash memory technology as Cisco

Systems announced it had chosen AMD as its prime supplier of flash memories over

the next three years. And, Texas Instruments announced sales of its ADSL modem

chips are growing at a five-fold rate over year-ago sales levels.

The AMD Flash chips will be used to store sophisticated code and data in

Cisco’s networking systems. "We chose AMD flash memory products because

of their high reliability and AMD's commitment to a seamless upgrade path to

higher densities," said Mike Campi, vice president of Cisco's Global Supply

Management group. "This agreement acknowledges AMD as a leader in flash

memory technology and positions AMD as a significant provider of flash memory

devices to Cisco."

"We are privileged and pleased to have been chosen by the worldwide

leader in the networking industry, to provide the flash memory devices for

products that enable the Internet information highway," said Walid

Maghribi, group vice president of AMD's Memory Group. "This agreement

extends beyond the standard customer/vendor paradigm. Rather, AMD and Cisco have

forged a true partnership designed to create a mutually beneficial

relationship."

AMD has developed a number of innovative Flash products and technologies,

including the patented "negative gate erase" technique. The company

also refined the industry standard "Fine Pitch Ball Grid Array"

(FBGA). All of AMD's flash memory products are guaranteed for a minimum of one

million write cycles per sector and 20 years data retention. Meanwhile, Texas

Instruments said it expects a fivefold increase this quarter in sales of chips

used for high-speed access over phone lines. TI said it expects to ship enough

DSP chips to power about 300,000 ADSL modem ports in the first quarter and

nearly 1 million ports in the first half of the year.

"Everything is fast-forward with the Internet. We expect it to continue

to grow exponentially,'' said Bill Eversole, general manager of Texas

Instruments' ADSL business. Eversole attributes Texas Instruments' increase in

ADSL shipments this year to a pickup in orders from technology companies that

supply major telecommunications firms. IBM is a major customer for the TI chips.

IBM builds ADSL equipment for San Antonio-based SBC Communications. Other key

accounts include Siemens and South Korea's Hyundai.