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More Headroom For AMD

Advanced Micro Devices Inc. this week will dedicate its new processor manufacturing plant in Dresden, Germany--its first for making chips on 300-mm wafers, the largest size in use in the semiconductor industry. The move marks a big step in the vendor's goal to ratchet up production capacity to as many as 100 million processors a year by 2008 or 2009.

"The capacity that we'll have in place gives us a lot of headroom," says Hector Ruiz, chairman, president, and CEO of AMD.

The company expects to invest a total of $2.5 billion in the plant, Ruiz says, in order to stay on the front edge of semiconductor manufacturing technology for at least the next eight years.

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