AMD fab for US2.5bn

AMD is spending US$2.5 billion to upgrade and expand its two factories in Germany. The investment should help the chipmaker in its struggle with arch-rival Intel: AMD has suffered in the past from supply problems.

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By  Dylan Bowman Published  June 4, 2006

AMD is spending US$2.5 billion to upgrade and expand its two factories in Germany. The investment should help the chipmaker in its struggle with arch-rival Intel: AMD has suffered in the past from supply problems. The news also follows PC giant Dell’s decision to start using AMD Opteron chips in its multiprocessor servers by the end of the year. “As global demand continues to rise for AMD products, we are scaling our manufacturing capacity intelligently to meet our customers’ growing needs,” said Hector Ruiz, AMD CEO and chairman of the board. “To achieve this, we are pursuing an aggressive path to invest in and expand our top-rated manufacturing capabilities in Dresden,” he added. AMD announced at the end of last month that it would expand its processor manufacturing capacity over the next three years by adding additional 300mm wafer production capabilities in Dresden through the implementation of three new projects. AMD’s newest fabrication facility will come online through a major transformation of the firm’s existing Fab 30, which will be named Fab 38. The transition from 200mm to 300mm allows for more than twice as many processors on a wafer. AMD will also expand Fab 36’s existing 300mm capacity and build a new clean room facility to handle the site’s growing ‘Bump and Test’ requirements — one of the final stages of the process where wafers are prepared to be shipped.

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