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AMD’s Plans to Build Fab in New York Are “Moving Along”.

Category: Other

by Anton Shilov

[ 05/15/2008 | 11:21 AM ]

Even though Advanced Micro Devices did not start construction of its Fab 4x this spring, as it was expected, the world’s second largest supplier of x86 central processing units (CPUs), said at a news-conference that its plans to build a semiconductor manufacturing facility were “moving along”.

“There is no ‘plan B’. We are focused on this area as far as the next place to develop a manufacturing facility, but there are many factors that are involved in that kind of decision,” said AMD’s director of global affairs, Ward Tisdale, reports News10 channel.

Advanced Micro Devices is currently considering its asset-smart strategy under which the company reportedly plans to reduce its investments into manufacturing. Actual details of the strategy are not clear, but some analysts believe that AMD plans to form joint-venture (or joint-ventures) with contract semiconductor manufacturers to produce chips for AMD and others at facilities controlled by AMD.

AMD has time till July 2009 in which AMD can choose to initiate the building of a new 300mm wafer fabrication facility in Saratoga County, New York. AMD has already received $650 million grant from the authorities to prepare for construction. The incentives offered by New York include a $500 million grant for construction, $150 million in R&D subsidies to be used over 5 years, and $250 million tax rebate.

AMD anticipates the need for a new facility and has selected the Luther Forest Technology Campus as an ideal site. Similar to AMD’s other fabrication facilities, construction of the building is expected to take about a year with another year needed for the installation of equipment and tools. The project has the potential to directly create approximately 1200 new jobs, along with thousands of indirect jobs through supporting construction and infrastructure projects. According to AMD, about 5500 new jobs in total will be created thanks to the Fab 4x.

Earlier AMD said that plant will initiate manufacturing in 2010 and will allow AMD to increase manufacturing capacities by 50% when compared to expected 2008 level. However, it is now almost clear that the Fab 4x will hardly initiate production in two years from now