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.