1.   AMD also said sales of its programming logic chips came in below expectations.

2.   As a result, they predicted that prices for logic chips would head downward, leading to reduced revenues.

3.   Because logic chips control functions in devices, demand from appliance makers remains constant and prices stable.

4.   Altera and Xilinx make programmable logic device chips, or PLDs, which are widely used in networking products, telecommunications equipment and industrial machinery.

5.   Both companies make logic chips that can be programmed for specific functions after they leave the factory.

6.   But logic chips like the graphic synthesizer are tricky to make, with intricate circuitry.

7.   But that leaves many other simpler memory and logic chips that can be produced there.

8.   Chang prefers to make only the more sophisticated logic chips.

9.   Fairchild now mostly sells logic chips, found in everything from personal computers to toasters.

10.   Fujitsu makes logic chips at four sites in Japan.