AMD announces $2.5 billion fab overhaul

— 1:51 AM on May 30, 2006

It looks like conflicting rumors regarding AMD's fab plans were both right. AMD has announced a three-year, $2.5 billion expansion plan for its existing fabs in Dresden that will see the company's Fab 30 undergo a "major transformation" and be renamed Fab 38. The transformation will transition the existing Fab 30 from 200 mm to 300 mm wafers, allowing over twice as many processors to be generated per wafer. This will bring the renamed Fab 38 in-line with AMD's newly-opened Fab 36, which was built as a 300 mm facility from the start. Fab 36 will also see a chunk of AMD's $2.5 investment; the facility's clean room will be expanded to handle shipping preparations for both Fab 38 and Fab 36.

Fab 38 is expected to begin 300 mm production on a 65 nm process "by the end of 2007," with 200 mm production due to start shrinking in the second half of the same year. Overall, AMD says its two fabs should hit a combined 45,000 300 mm wafer starts per month before 2009. Add the extra 300 mm wafer production from Chartered Semiconductor, and it looks like AMD should have a good supply of chips to feed its growing market share.

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