Guaranty - Advanced Micro Devices Inc. and Fujitsu Ltd.


                                    GUARANTY
                                    --------

This Guaranty (the "Guaranty") is effective as of October 1, 2000 and 
is entered into by ADVANCED MICRO DEVICES, INC., a Delaware corporation 
("AMD"), in favor of and for the benefit of FUJITSU LIMITED, a 
corporation organized under the laws of Japan ("Fujitsu").

                                    RECITALS

A. Fujitsu Microelectronics, Inc., a California corporation ("FMI") 
and Fujitsu AMD Semiconductor Limited, a joint venture organized under 
the laws of Japan ("FASL") are in the process of negotiating a foundry 
agreement whereby FMI will ***** production capacity for flash wafers 
at FMI's Gresham Manufacturing Division in Gresham, Oregon ("GMD") to 
FASL and pursuant to which FASL will purchase ***** of the flash 
wafers produced by FMI (the "GMD Wafers").

B. FASL, AMD and Fujitsu are party to that certain Sales and Purchase
Agreement of FASL Products dated as of September 8, 1995 (as amended 
from time to time, the "FASL Sales Agreement"), pursuant to which AMD 
and Fujitsu purchase wafers from FASL (including without limitation 
the GMD Wafers). *****.

C. In order to meet its working capital needs and to increase
production capacity at GMD, FMI wishes to borrow funds from the 
lenders (the "Lenders") under that certain US$550,000,000 364-Day 
Global Multicurrency Revolving Credit Facility Agreement dated October 
29, 1999, with Credit Lyonnais, Tokyo Branch, the Agent Bank, or any 
amendment or replacement, including any bilateral bank loan facility, 
of the credit facility (the "Credit Facility").

D. Under the terms of the Credit Facility, Fujitsu is a co-signer with
FMI on all borrowings made by FMI pursuant to the Credit Facility 
(such co-signing obligation being the "Fujitsu Primary Lender 
Obligation").

E. In consideration of Fujitsu's Primary Lender Obligation and because
increased production capacity at FMI will benefit AMD, AMD has agreed 
to provide to Fujitsu a guarantee of FMI's obligations under the 
Credit Facility, up to a maximum guaranteed amount of $125,000,000, 
subject to the terms and conditions outlined herein.

NOW THEREFORE, in consideration of and subject to the mutual covenants,
terms and conditions contained in this Agreement, AMD and Fujitsu agree 
as follows:

1.  Guaranty.

(a)  In order to induce Fujitsu to maintain its Primary Lender 
Obligation for FMI's borrowings under the Credit Facility, AMD 
guaranties the due and punctual payment in full of all Guarantied 
Obligations (as hereinafter defined) when the same shall

Confidential treatment has been requested for portions of this exhibit.  
The copy filed herewith omits the information subject to the 
confidentiality request.  Omissions are designated as *****.  A 
complete version of this exhibit has been filed separately with the 
Securities and Exchange Commission.

                                       1



become due, whether at stated maturity, by acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. ss. 362(a)), but
solely to the extent such Guarantied Obligations become due as a result of FMI's
(x) failure to pay a scheduled installment of principal or interest on the
Credit Facility when due (including without limitation at maturity) (such
failure being "Payment Default") or (y) request for an immediate advance of
funds from Fujitsu accompanied by a written certification sent to both Fujitsu
and AMD and signed by FMI's Chief Financial Officer stating that such failure
will occur in the absence of the advance. The term "Guarantied Obligations"
means the obligations of FMI under the Credit Facility or under any advance from
Fujitsu made in response to such written certification from FMI's Chief
Financial Officer, but in no event shall the Guarantied Obligations exceed
$125,000,000 in the aggregate. Fujitsu acknowledges, except as specifically
noted above, that in no event shall the "Guarantied Obligations" hereunder
include any obligations of FMI to Fujitsu, any affiliate or subsidiary thereof
or to the Lenders other than such obligations as may arise in connection with
the Credit Facility.

     (b) AMD acknowledges that the Guarantied Obligations are being incurred for
and will inure to the benefit of AMD.

     (c) Subject to the other provisions of this Section 1, upon (x) an advance
of funds by Fujitsu to FMI in response to a written certification from FMI's
Chief Financial Officer in the form noted in Section 1(a) above or (y)(i)
acceleration of the Credit Facility due to a Payment Default by FMI (except to
the extent such Payment Default is caused by Fujitsu or is due to the failure of
FMI or Fujitsu to renew or replace the 364-Day Credit Agreement at its
terminination) and (ii) a demand under Fujitsu's Primary Lender Obligation, AMD
will upon Fujitsu's demand pay, or cause to be paid, in cash, to Fujitsu, an
amount equal to (i) the aggregate of the unpaid Guarantied Obligations of FMI
under the Credit Facility in case of the Payment Default or (ii) any advance
from Fujitsu made in response to a written certification from FMI's Chief
Financial Officer.

     2. Guaranty Absolute; Continuing Guaranty. The obligations of AMD hereunder
are absolute and independent and shall not be affected by any circumstance that
constitutes a legal or equitable discharge of AMD other than payment in full of
the Guarantied Obligations or termination of this Guaranty. In furtherance of
the foregoing and without limiting the generality thereof, AMD agrees that: (a)
this Guaranty is a guaranty of payment when due and not of collectibility; (b)
subject as provided herein, Fujitsu may enforce this Guaranty upon an
acceleration under the Credit Facility and a demand on the Fujitsu Primary
Lender Obligation, or upon Fujitsu's advance of funds; and (c) AMD's payment of
a portion, but not all, of the Guarantied Obligations shall in no way limit,
affect, modify or abridge AMD's liability for any portion of the Guarantied
Obligations that has not been paid. This Guaranty is a continuing guaranty and
shall be binding upon AMD and its successors and assigns.

     3. No Discharge. This Guaranty and the obligations of AMD hereunder shall
be valid and enforceable and, subject as provided herein, shall not be subject
to any

Confidential treatment has been requested for portions of this exhibit.  The
copy filed herewith omits the information subject to the confidentiality
request.  Omissions are designated as *****.  A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.

                                       2



limitation, impairment or discharge for any reason (other than payment in full
of the Guarantied Obligations or any termination of this Guaranty).

     4. Expenses. AMD agrees to pay, or cause to be paid, on demand, and to save
Fujitsu harmless against liability for, any and all costs and expenses incurred
or expended by Fujitsu in connection with the enforcement of or preservation of
any rights under this Guaranty.

     5. Amendments and Waivers. No amendment, modification, termination or
waiver of any provision of this Guaranty, and no consent to any departure by AMD
therefrom, shall in any event be effective without the written concurrence of
Fujitsu and, in the case of any such amendment or modification, AMD. Any such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given.

     6. Miscellaneous.

     (a) In case any provision in or obligation under this Guaranty shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

     (b) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF AMD AND FUJITSU
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

     (c) This Guaranty shall inure to the benefit of Fujitsu and its successors
and assigns.

     (d) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST AMD ARISING OUT OF OR RELATING
TO THIS GUARANTY MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS
GUARANTY AMD ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY
AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY
ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS GUARANTY. AMD agrees that
service of all process in any such proceeding in any such court may be made by
registered or certified mail, return receipt requested, to AMD at its address
set forth below its signature hereto, such service being acknowledged by AMD to
be sufficient for personal jurisdiction in any action against AMD in any such
court and to be otherwise effective and binding service in every respect.
Nothing herein shall affect the right to serve process in any other manner
permitted by law or shall limit the right of Fujitsu to bring proceedings
against AMD in the courts of any other jurisdiction.

Confidential treatment has been requested for portions of this exhibit.  The
copy filed herewith omits the information subject to the confidentiality
request.  Omissions are designated as *****.  A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.

                                       3



     (e) AMD AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, FUJITSU EACH AGREES
TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS GUARANTY. The scope of this waiver is intended
to be all-encompassing of any and all disputes that may be filed in any court
and that relate to the subject matter of this transaction, including without
limitation contract claims, tort claims, breach of duty claims and all other
common law and statutory claims. AMD and, by its acceptance of the benefits
hereof, Fujitsu each (i) acknowledges that this waiver is a material inducement
for AMD and Fujitsu to enter into a business relationship, that AMD and Fujitsu
have already relied on this waiver in entering into this Guaranty or accepting
the benefits thereof, as the case may be, and that each will continue to rely on
this waiver in their related future dealings, and (ii) further warrants and
represents that each has reviewed this waiver with its legal counsel and that
each knowingly and voluntarily waives its jury trial rights following
consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS OF THIS GUARANTY.
In the event of litigation, this Guaranty may be filed as a written consent to a
trial by the court.

     7. Counterparts. This Guaranty may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original for
all purposes; but all such counterparts together shall constitute but one and
the same instrument.

     8. Covenant. Each party covenants and agrees that it will enforce this
Guaranty and its rights hereunder in good faith.

     9. Termination. This Guaranty shall terminate and be of no further force
and effect on the earliest of:

     (a) any default by Fujitsu under the FASL Sales Agreement or the Joint
Venture Agreement dated March 30, 1993 between AMD and Fujitsu, as amended;

     (b) termination of the Credit Facility;

     (c) March 31, 2003.

Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *****. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.


                                       4



     IN WITNESS WHEREOF, AMD and, solely for purposes of the waiver of the right
to jury trial contained in Section 6, Fujitsu have caused this Guaranty to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

                                    ADVANCED MICRO DEVICES, INC.

                                              /s/ Francis P. Barton

                                    By:           Francis P. Barton
                                             -----------------------------------
                                    Title:        Senior Vice President & -----------------------------------
                                                  Chief Financial Officer

                                    Address:      One AMD Place
                                                  Sunnyvale, California 94088
                                                  Attention:
                                                            --------------------


                                    FUJITSU LIMITED

                                              /s/ Takashi Takaya

                                    By:           Takashi Takaya
                                             -----------------------------------
                                    Title:        Executive Vice President
                                             -----------------------------------

                                    Address:      6-1, Marunouchi 1-chome
                                                  Chiyeda-ku, Tokyo 100-8211
                                                  Attention: Finance Division


                                       5