AMD gets money from Germans to build Fab 36


— 11:43 AM on February 6, 2004

AMD's new chip fab will be adjacent to its current one in Dresden, Germany, thanks to generous help from the several governments responsible for the area. From the press release:

Sunnyvale, CA, and Dresden, GERMANY - February 5, 2004 - Advanced Micro Devices, Inc. (NYSE: AMD) today welcomed the European Union (EU) Commission's approval of investment aid for its next-generation microprocessor wafer facility, AMD Fab 36, in Dresden, Germany. The Federal Republic of Germany and the Free State of Saxony are providing investment allowances and investment grants of up to approximately EUR545 million - the highest benefit possible under the grants and subsidy program.
If you're a struggling processor company, that's gotta be music to the ears. Fab 36 will be a next-gen facility capable of producing 300mm wafers. AMD expects the facililty to enter "volume production in 2006."

I would like to thank the taxpayers of Germany, Saxony, and the EU for subsidizing cheap chips for us all.

One wonders, though, whether geographic diversity shouldn't have played a bigger role in AMD's decison-making process. What happens if Dresden is hit by disaster? It's not without historical precedent, and these fabs aren't cheap.

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