AMD deal could bring chip fab to region

Newly formed chip manufacturing company would consider bringing research or fabrication facilities to Abu Dhabi

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By  Mark Sutton Published  October 7, 2008

AMD’s newly spun off manufacturing business could bring semiconductor fabrication and research to Abu Dhabi, it was revealed today.

Doug Grose, AMD’s senior VP of manufacturing operations, who will take on the CEO role at the new-formed The Foundry Company, said that the company would consider operations once it had completed expansion plans for facilities in Germany and the US.

Speaking on a press and analyst call, Grose said: “Once we complete the Dresden expansion, and build out upstate New York, and if commercially justified, we will consider creation of research and manufacturing facilities in Abu Dhabi.”

The provisionally named The Foundry Company will be formed through the sell off of two AMD semiconductor fabrication plants in Dresden, along with assets and IP rights, which will then go to the new company.

The Abu Dhabi government will form another new company Advanced Technology Investment Co, (ATIC) which will pay at least $6 billion for a 56% stake in The Foundry Company.

In 2009 the company plans to refurbish the two Dresden facilities, one producing 200mm wafers, and the other 300mm, including upgrading the 200mm Fab to 300mm and increasing capacity.

In the middle of next year, the company also begin work on what it says will be the first independent semiconductor manufacturing plant in the US, at the Luther Forest Technology Campus in upstate New York. The US plant is intended to be a state of the art facility, creating a direct 1,400 high tech jobs, and a further 5,000 jobs in the local economy.

Grose commented: “AMD and ATIC are creating a company capable of delivering high volume, leading edge manufacturing capabilities today, with the resources to increase capacity and technology innovation for tomorrow.”

The Foundry Company will also become part of the IBM Alliance, a technology development group, working on silicon-on-insulator (SOI) and bulk silicon through the 22 nanometre generation.

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