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Press Release

Spansion and Atheros Communications Team to Deliver Innovative Packaging Solution for Handset Manufacturers

Leading Flash Memory and Wireless LAN Providers Develop Package-on-Package to Enable Small Dual-Mode Mobile Phones

SANTA CLARA, Calif., Sept. 19, 2005— Spansion LLC, the Flash memory venture of AMD (NYSE:AMD) and Fujitsu Limited (TSE:6702), and Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions, today announced they have developed an innovative packaging solution that is designed to significantly reduce the size of today’s dual-mode Cellular/Wireless LAN (WLAN) mobile phones. The packaging solution vertically stacks the Atheros Radio-on-Chip for Mobile (ROCm®) 802.11a/g and 802.11g solutions with Spansion™ MirrorBit™ Flash memory. This solution enables handset manufacturers to provide valuable new services, such as Voice-over-IP (VoIP) and WLAN data connectivity for fast download of content such as ring tones, music, video clips, games, and email, in very small form factors.

An innovative approach to semiconductor packaging, Package-on-Package (PoP) solutions vertically stack system components for board savings, lower pin-count, simplified system integration and enhanced performance. The resulting PoP enables handset suppliers increased flexibility as compared to alternative packaging solutions like System-in-Package (SIP). The new PoP solutions based on the Atheros and Spansion devices will combine WLAN radio and baseband functions with the high-density code and data storage required by the vast majority of handset end-products--in a small footprint measuring only 160 mm2. In comparison, a similarly configured solution using discrete chips can be as large as 800 mm2. 

“Connectivity and content will drive adoption of next-generation cell phones,” said Amir Mashkoori, senior vice president and general manager of Spansion’s Wireless Solutions Division. “As handset manufacturers require more memory to enable new features and Wi-Fi to deliver the bandwidth necessary for consumers to access and download rich content and applications on their phones, Atheros and Spansion have each contributed to the ideal solution.  Together, we expect both companies will play a key role in enabling cellular, Wi-Fi convergence.”

Spansion offers a 12 x 12 mm package that integrates up to five different memory chips in a 128-ball solution with a 0.65 mm pitch.  This package rests on top of an Atheros package, also measuring 12 x 12 mm, which provides the ROCm 802.11a/g and 802.11g (AR6001 family) Mobile WLAN chips in a 376-ball package with a 0.5 mm pitch.

“Our drive towards low power, low cost and small footprints is enabling high-performance WLAN technology in more handheld devices such as dual-mode phones,” said Craig Barratt, president and chief executive officer of Atheros. “We are pleased to be working with Spansion, leveraging their technical expertise in developing advanced packaging solutions and success in mobile phone and handheld markets. Together we’ll offer an innovative solution for integrating WLAN capabilities into new, smaller mobile phones with better performance and cost savings.”      

Atheros ROCm® Platform

The Atheros ROCm solutions minimize power consumption through the use of techniques such as automatic power save delivery (APSD) and an extremely low-power sleep mode. ROCm also processes beacons, multi-cast and broadcast packets without waking up the host system processor, thus further reducing the power consumption and improving the battery life.

Availability

The memory and logic packages are expected to be available in the fourth quarter from Spansion and Atheros, respectively, for assembly into a total PoP solution. For more details about the solution, please contact info@atheros.com  or www.spansion.com.

About Spansion 

Spansion, the Flash memory venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to developing, designing, and manufacturing Flash memory products. In fiscal 2004, Spansion's total net sales were approximately $2.3 billion. The company offers the broadest NOR Flash memory portfolio in the industry, for use in the wireless, automotive, networking, telecommunications and consumer electronics markets. The company's portfolio is supported by a worldwide network of advanced manufacturing facilities, system-level expertise and dedicated design support, and an unwavering commitment to our customers’ success. Information about Spansion Flash memory solutions is available at www.spansion.com.

About Atheros Communications, Inc.

Atheros Communications is a leading developer of semiconductor system solutions for wireless communications products. Atheros combines its wireless systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufacturable on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is being used by a broad base of leading customers, including personal computer, networking equipment and handset manufacturers. For more information visit, www.atheros.com or send email to info@atheros.com.

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Spansion, the Spansion logo, MirrorBit, and combinations thereof, are trademarks of Spansion LLC. AMD is a trademark of Advanced Micro Devices, Inc. Atheros is a registered trademark of Atheros Communications, Inc., and ROCm is a trademark of Atheros Communications, Inc. Other names used are for informational purposes only and may be trademarks of their respective owners.

Cautionary Statement

Except for the historical information contained herein, the matters set forth in this press release, including the features, performance, benefits, and availability of the PoP packaging solution of Spansion and Atheros, Atheros’ ROCm solutions, and Spansion’s MirrorBit Flash memory; and the anticipated adoption of dual-mode WLAN/cellular mobile phones and other handsets that integrate WLAN technology, and the growth of these markets, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the impact of competitive products and technological advances; unforeseen defects in the integration of Atheros’ and Spansion’s products into the PoP packaging solution that may be discovered upon volume production and broad deployment; manufacturing difficulties; difficulties in development of enhanced and new products; whether Atheros and Spansion are successful in marketing and selling the PoP solution; whether Atheros and Spansion are able successfully to negotiate and coordinate timing of production and volumes of products to create the PoP solution; Atheros’ lack of experience in cellular phone markets; whether the markets for WLAN-enabled mobile devices grow; general economic conditions; and the effects of regulation of cellular and other wireless markets. We urge investors to review in detail the risks and uncertainties in Atheros’ Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q,  Spansion’s Registration Statement on Form S-1 and AMD’s Quarterly Report on Form 10-Q for the quarter ended June 26, 2005, and in other reports filed with the SEC from time to time. These forward-looking statements speak only as of the date hereof. The companies disclaim any obligation to update this cautionary statement.


For Atheros press contact: Susan Lansing, 408-773-5216, susan@atheros.com, or Greg Wood, A&R Partners, 650-762-2838, gwood@arpartners.com

For Spansion press contact: Joany Draeger, 408-749-5135, joany.draeger@spansion.com