Charter to manufacture AMD processors

— 10:15 AM on November 9, 2004

AMD is looking to ramp up capacity so it can take a bigger slice of the CPU market, it would seem. The company has signed up the Chartered Semiconductor foundry firm to make AMD64 processors. The press release says:

SUNNYVALE, CALIF. AND SINGAPORE-NOV. 9, 2004-AMD (NYSE: AMD) and Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED) today announced they have entered into sourcing and manufacturing technology agreements whereby Chartered will implement under license portions of AMD's Automated Precision Manufacturing (APM) software suite and become an additional manufacturing source of AMD64 microprocessors.

With the success of the AMD64 architecture and AMD's plans for future growth, AMD is lining up additional incremental capacity to augment its production at its state-of-the-art site in Dresden, Germany. AMD will use this capacity to meet the expanding end-customer demands for AMD Athlon 64 and AMD Opteron processor-based systems. AMD plans to have Chartered begin production in 2006.

AMD is also building a second fab at the Dresden, Germany site of its current CPU fab, so its total production capacity for CPUs a few years down the line could be, potentially, quite a bit higher than it is today. Right now, AMD can only supply a minority portion of the x86 processor market due to manufacturing limitations.
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