AMD Launches Construction Of German Plant - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure

AMD Launches Construction Of German Plant

The $2.4 billion factory in Dresden will be the chipmaker's second in that city and is expected to be up and running in 2006.

DRESDEN, Germany (AP) -- U.S. computer chip maker Advanced Micro Devices Inc. is building a $2.4 billion plant that it said would create 1,000 jobs in the eastern German city of Dresden and help meet an anticipated surge in demand.

The factory--AMD's second in the city--will be built with financial help from Germany's federal government and the state of Saxony, and should be up and running in 2006.

Dresden is already home to AMD's Fab 30 factory, which makes its Athlon chips for use in personal computers.

Company president and chief executive Hector Ruiz said Thursday the plant would help the company meet an anticipated increase in demand for its products, including its new 64-bit chips.

"Positive customer response and increasing momentum for our AMD64 processors make it clear that the time is right to expand our manufacturing capacity in order to meet future demand," Ruiz said in a statement.

The project is slated to get some $500 million in grants and allowances from the federal and local government, and $320 million in equity funding from Saxony and investors led by M+W Zander, a Stuttgart-based firm that specializes in planning and managing high-tech factories.

A group of banks is loaning $700 million, with 80 percent of that covered by government guarantees.

"By building in Dresden, we are able to leverage the outstanding capabilities of our existing AMD Fab 30 and gain access to the most substantial government-backed financial incentives package available to us," AMD chief financial officer Bob River said.

Germany's education and research minister, Edelgard Bulmahn, said the plant was part of an effort "to trigger a new dynamic with technological innovations that create jobs and secure Germany's future."

AMD, based in Sunnyvale, Calif., is the world's second largest maker of PC microprocessors behind Intel Corp. and had some $2.7 billion in sales last year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll