AMD inaugurates its new Microprocessor Fab

AMD inaugurated its new world microprocessor fabrication facility called Fab 36, in Dresden, Germany on Oct 14, 2005. The number 36 signifies AMD's existence for that many years. This is the second fab that AMD's setup in Dresden. It's adjacent to the first one, called Fab 30. The new fab has been built from ground up in two years flat, which is quite remarkable considering a project of this magnitude. 

So far, $2.5 billion have been invested in the facility, and this figure will hit $5 billion by 2007. The facility will start shipping microprocessors from Jan 2006, and will reach its full capacity by 2007. This fab will enable the company to produce 100 million microprocessors by that time frame, enabling AMD to meet the growing demand for its processors. 

According to the AMD Chairman of Board, President, and CEO, Hector Ruiz, the new factory is coming in line at the perfect time. The company has never had a stronger positioning in the history of AMD. He also pointed out that they've enjoyed an astounding year on year growth of 44% year during the last quarter. Hector said that the opening of the factory indicates their confidence in this growth. 

The opening of this fab is not only relevant to AMD, but also to the German Government, which is why the inaugural ceremony was attended by the German Chancellor-Gerhard Schroeder himself, along with the Prime Minister for the free state of Saxony, and other senior government officials. It's one of the largest foreign direct investments in Germany over the past decade. Speaking on the occasion, the Chancellor said that what's happened in Dresden is something quite out of the ordinary. It proves that Germany is an attractive location for investment in cutting edge technology. 

The Fab will help create around 7,000 job opportunities, both direct and indirect in the state, thereby increasing employment. AMD hopes to have 3,000 staff members in this location by the end of 2006. The fab itself will use 300 mm wafers for manufacturing, which basically increases the number of processors that can be produced per wafer. Initially, it will be used to build processors on 90 nm technology, but will later move to 65 nm. The fab uses what's called the Advanced Process Manufacturing technology, which is supposed to improve the overall utilization of tools used in microprocessor fabrication, thereby bringing in far greater production efficiencies.

DRESDEN

GERMANY