Fujitsu Ltd has agreed with Advanced Micro Devices Inc to build a second Flash memory chip plant alongside the existing one in Aizuwakamatsu, at a reported cost of $1,150m. Demand for Flash chips is increasing, mainly for use in cellular phones, and the two want to best current market leader, Intel Corp. The current plant uses a 0.5 micron process but the new one will be 0.35 micron.