Fujitsu-AMD Semiconductor Ltd. (FASL)

Advanced Micro Device (AMD) and Fujitsu Limited decided in early 2003 to create a new semiconductor flash memory company named FASL LLC (Fujitsu-AMD Semiconductor Limited). The company was formed by the integration of AMD’s and Fujitsu’s Flash memory businesses. The new joint venture is the largest Flash memory company in the world, with a global workforce of approx. 7000 employees and a gross assets net book value of about USD 3 billion. The company is truly worldwide, operating manufacturing and assembly and test sites, in Japan, Malaysia, China, Thailand and the US. The company headquarter is based in Sunnyvale, CA and operates a Japan headquarter in Tokyo.  The equity ownership is split 60% - 40% between AMD and Fujitsu. The financial result of the organization is consolidated in AMD’s financial statements.

FASL LLC will market its solutions under the global product name Spansion. The flash memory products cover a broad spectrum of density and features to support a wide range of markets. Spansion’s current key customers operate in the wireless, cellular, automotive, networking, telecommunication and consumer electronics market place. The offered products solutions are available worldwide from AMD and Fujitsu and its sales forces.

Business Environment

AMD and Fujitsu have a solid history of cooperation. The original joint venture, initiated in 1993, has been a model of success for US – Japanese team work. This partnership was taken to the next level by forming the new organization. By joining together FASL LLC can improve its market position through consolidating research and development efforts, as well as benefit from greater access to each other’s technology and manufacturing expertise.  By applying a customer-centric approach, industry-leading technology know-how, integrated manufacturing and a streamlined business model, the company wants to be the pre-eminent provider of flash memory worldwide.

The SAP R/3 system plays an important role, allowing the required streamlined business processes. In addition it provides the essential flexibility for future changes, roll-outs and enhancements, which are eminent in the high tech business. The highly configurable system allowed the parties to realize a fast roll-out of the joint venture.

SAP R/3 Implementation

Scope

Phase A (Worldwide Company Split & introduction of additional New Companies)                AMD was operating world wide on SAP R/3 4.6C in the following areas - FI/CONS/CO/ PS/AM/MM/WHSE and EBP/BW and WP before the joint venture idea was born. Based on the formation of the new organization, the phase A scope included the transfer of 2 existing AMD assembly and test sites to the new FASL Company, as well as the split of an assembly and test site and a fab location between AMD and FASL LLC. In addition 2 new company codes had to be integrated into SAP FI and an the overall consolidation of all new FASL companies including a roll-up to the AMD mother holding were required.  Beside that AMD was operational on HR in the US, which meant that AMD flash memory employees had to be transferred to FASL LLC US as part of the overall scope. Also the existing EBP implementation including approval for PO/AP and Payment Request had to be adapted to the FASL environment. The main key to the success of this project were clean conversion into the new companies/plants and close records in former locations and companies.

Phase B (Roll-out of FI/CO/PS/AM/MM/EBP/BW and WP to FASL Japan)

During the last month of the phase A installation, a part of the AMD team was starting to collect the requirements for the Japanese locations. The sites covered by this roll-out included the following fab facilities: JV1 and JV2 Monden as well as JV3 Takaku located in Aizu-Wakamatsu. The manufacturing sites are producing flash memory devices on 0.32, 0.23 and 0.17 micron technology. The overall capacity is more than 20,000 eight-inch wafers per week. The most advanced processes are used in this state of the art, class 1 clean room facilities. In addition, purchasing operations in Shinjuku and Nagoya needed to be supported. The implementation, was based on known business processes from phase A, but had the take into account Japanese specific requirements and printing requests. An essential part to the success of the roll-out, was based on the clean conversion of data from the older legacy systems into SAP R/3 and the need to have all data converted in Japanese language

Support Teams

Phase A Team Consulting Group, Inc. (TCG) was part of the initial SAP implementation at AMD in 2001, as part of a TeamSAP implementation effort. Based on the solid performance during this first implementation, TCG was asked to come back to AMD and play a key role during this company split project. Two TCG consultants were working full time at the client site from the beginning to the end of the project, including hands-on support and execution during go live and the production support phase. They played an essential role in all SAP logistics areas of the project as well as the integration to FI/CO and PS. In addition project management support was provided during the planning phase of the project and during the execution in form leading Integration tests and providing detailed, executable SAP cutover plans to the AMD project management. The overall external consulting team was a small team of 5-6 consultants covering all required areas of the system.

Phase B The external team was limited to 4-5 consulting resources. The TCG team was fully taken over to the roll-out and continued to play an important role in configuration and conversion of data in English and Japanese. TCG resources made sure that the SAP integration was fully considered and provided an executable, hands-on cutover plan, which was used together with the FASL team to bring the sites, live on time. The existing phase A AMD implementation team was enlarged by a local FASL core team. All training related tasks were provided by the AMD-FASL team members, which underlined that all knowledge transfer from consultants to client resources was performed accurately.

The overall AMD core team consisted of approx. 5-6 Logistics and 5-6 Finance/CO/PS team members. Most of these resources were fully assigned to the SAP project and were located in Sunnyvale, Austin and Dresden. The team was doing a good job communicating between the team and across the locations involved. This allowed the implementation to be successful without a lot of travel budget spent.  Two integration tests were conducted in the US to test the system locally and prepare the end-users before turning on the system. The in-house team was a mix between AMD IS staff and experienced business users.

Duration

Phase A was implemented within a 5 months time frame and went live in time and on budget on 06/30/2003.

Phase B was implemented within a 3 months time frame and went live in time and on budget on 09/29/2003.