AMD to Invest US$2.5 Billion in Germany to Expand 300mm Microprocessor Production
Monday May 29, 4:01 am ET
Large Investment in Europe Underscores AMD's Leadership Strategy to Drive Microprocessor Manufacturing Innovation and Reduce Costs for End Customers
SUNNYVALE, Calif. & DRESDEN, Germany--(BUSINESS WIRE)--May 29, 2006--AMD (NYSE: AMD - News) today announced that it plans to expand its microprocessor manufacturing capacity over the next three years by adding additional 300 millimeter wafer production capabilities in Dresden through the implementation of three new projects. AMD's newest fabrication facility will come online through a major transformation of the company's existing Fab 30, which will be named Fab 38. The transition from 200mm to 300mm allows for more than twice as many processors on a wafer. In addition, AMD will also expand Fab 36's existing 300mm capacity and build a new clean room facility to handle the site's growing Bump and Test requirements, which is one of the final stages of the manufacturing process where wafers are prepared to be shipped for packaging. With plans to invest a total of US$2.5 billion in the Dresden expansion projects, AMD continues to aggressively scale its innovative manufacturing processes to meet growing customer needs.
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"As global demand continues to rise for AMD products, we are scaling our manufacturing capacity intelligently to meet our customers' growing needs," said Hector Ruiz, chairman of the board and chief executive officer of AMD. "To achieve this, we are pursuing an aggressive path to invest in and expand our top-rated manufacturing capabilities in Dresden. These strategic investments highlight how significant Germany and Europe are to the future of AMD competitiveness. We expect that AMD's momentum and demand for our products will continue to increase, fueled by our technology leadership, our commitment to customer-centric innovation and the continuing global antitrust scrutiny that will ensure truly competitive markets."
AMD will ramp down 200mm manufacturing in the second half of 2007, with preparation already underway for the ramp of 300mm wafers on 65nm process technology at Fab 38 by the end of 2007. Through the combination of leading-edge equipment, Automated Precision Manufacturing (APM) and the great people of Dresden, the plant will produce the latest generations of AMD microprocessors, reaching full capacity by the end of 2008. The majority of the investment will go into new equipment in the Fab 38 facility. AMD will also build a new clean room facility on its Dresden campus for Bump and Test requirements, which will support both fabrication facilities. Previously, the clean room facilities for Bump and Test activities were located within Fab 30 and Fab 36. By moving them into a new facility in 2007, AMD has the ability to maximize production space at both Fab 36 and Fab 38, providing increased output and capacity. These three projects have the potential to increase Dresden-based manufacturing to a full capacity of 45,000 300mm wafer starts per month by the end of 2008.
"With the addition of Fab 36, AMD took a major step forward in increasing output and scale for its global manufacturing and with this announcement we raise the bar even further," said Daryl Ostrander, senior vice president, logic technology and manufacturing, Microprocessor Solutions Sector. "As we look ahead to aggressive process technology transitions to 45nm and beyond, the ability to continue delivering these technologies with world-class yields will provide customers with incredibly sophisticated and agile manufacturing capabilities, whereby we can continue to accommodate the increasing demand for AMD products."
About AMD
Advanced Micro Devices (NYSE: AMD - News) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.
Cautionary Statement
This release contains forward-looking statements concerning AMDs plans for future capital expenditures, Fab 30, and its conversion to Fab 38 and Fab 36, including its output and capacity, and demand for AMD64-bit solutions, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks that the company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that global business and economic conditions will worsen resulting in lower than currently expected sales; that Intel Corporation's pricing, marketing programs, product bundling, new product introductions or other activities targeting the company's microprocessor business will prevent attainment of the company's current microprocessor sales plans; that demand for computers, and, in turn, demand for the company's microprocessors will be lower than currently expected; that adoption of AMD64 products by OEMs will not continue to occur as expected; that the company may not achieve its current product and technology introduction or implementation schedules; that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to maintain its market positions and that solutions providers will not timely provide the infrastructure to support the company's AMD64 technology. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 25, 2005 and the Quarterly Report on Form 10-Q for the quarter ended March 26, 2006.
AMD, the AMD Arrow logo, AMD64, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.
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