Spansion, which was formed by the 2005 spinout of the NOR product groups of AMD and Fujitsu Ltd., said it now maintains a more flexible manufacturing network that balances internal and external capacity to fulfill customer demand. The company said its Fab 25 in Austin, Texas, is the company's main wafer fabrication facility, with supplemental foundry support provided by Spansion Japan Ltd., Fujitsu and China's SMIC. For test, assembly and packaging, Spansion maintains two internal facilities with a number of additional external resources, the company said.
Spansion Japan Ltd., a subsidiary of Spansion, commenced corporate reorganization proceedings in Japan on March 3. As a result, the financial results of Spansion Japan are no longer included in the consolidated financial results of Spansion Inc., the company said.
Spansion said it believes that the prices it paid to Spansion Japan under pre-bankruptcy foundry agreement were significantly greater than fair value. Spansion attempted to renegotiate these pricing terms with Spansion Japan, but was unsuccessful, the company said. In October, Spansion filed a motion with the U.S. Bankruptcy Court to reject the foundry agreement, which it did on Nov. 19, Spansion said.
Since the foundry agreement was rejected, there is no valid contract that establishes wafer prices between Spansion and Spansion Japan, the company said. The U.S. Bankruptcy Court is scheduled to hear evidence to establish the value of the wafer prices on Jan. 8, Spansion said, which could have a material impact on Spansion's results from Feb. 9 through Oct. 27.