May 24, 2010 / 10:10 AM / in 9 years

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 (Reuters) - 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 decades.

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

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