UPDATE 1-Spansion CEO says to narrow focus to compete

* Aims to regain mkt share lost during reorganisation

* Stock down 13 pct since re-listing, vs 6 pct Nasdaq drop
(Adds more CEO comments starting in seventh paragraph)

TOKYO, May 24 (BestGrowthStock) – Spansion Inc (CODE.A: ), a flash
memory chip maker that emerged from bankruptcy this month, said
it would narrow its product line-up as it looks to carve out a
profitable niche for itself in the market.

Spansion used to be the global leader in a type of flash
memory called NOR, which is used for storing code that devices
run on, but has since fallen behind Numonyx Holdings, which was
acquired by Micron Technology Inc (MU.O: ).

Spansion Chief Executive John Kispert told a news conference
in Tokyo that the company would focus on flash memory chips
“embedded” in products for the wireless, auto and electronics
industries, as part of its strategy for generating profits.

“It’s no secret here it’s about focus, focusing on strong
customers like customers we have in Japan,” Kispert said.

Spansion filed for bankruptcy protection in March 2009 when
global chipmakers struggled with the sector’s worst downturn in

Spansion ranked as the sixth-largest maker of flash memory
chips after Samsung Electronics (005930.KS: ), Toshiba Corp
(6502.T: ), Numonyx, Hynix Semiconductor (000660.KS: ), and Micron in
the October-December quarter, according to research firm iSuppli.

Kispert said Spansion lost about 10 points of market during
its year in bankruptcy, but hopes to gain that back.

“It was because customers won’t order from a company in
bankruptcy,” he said. “Clearly I am overwhelmed by the positive
response from customers (since we emerged from bankruptcy). I
would be disappointed if we didn’t get them all back.”

The Nikkei business daily reported on Saturday that Texas
Instruments (TXN.N: ) was in final talks to buy two plants owned by
Spansion Japan for 10-20 billion yen ($111-222 million).

Kispert said he could not confirm the report as Spansion
Japan is now a separate entity from Spansion Inc, which has
established a new subsidiary in Japan.

As part of its emergence from bankruptcy, Spansion has listed
new shares that began trading in New York about a week ago. Those
shares are down around 13 percent since they began trading,
versus a 6 percent drop for the Nasdaq over that period.
($1=90.00 Yen)

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(Reporting by Sachi Izumi and Doug Young; Editing by Michael
Watson and Jacqueline Wong)

UPDATE 1-Spansion CEO says to narrow focus to compete