AMD to Invest $5.8B USD into Dresden Fabs
April 5, 2006 6:07 PM
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AMD prepares for a major ramp up this year leading all the way through to 2008
AMD's position as a force to be reckoned is no longer under question. The company has invested significantly over the last several years and made very good bets on its strategy that are now bringing fruits to the effort that was put in.
We previously reported earlier in the year that AMD was putting in a
rough sum of $500M USD to upgrade Fab 36
in Germany. The money was laid out to upgrade the facility to produce larger wafers with smaller lithography processes. Since then, Fab 36 has been operating at a good pace and is now producing a good amount of revenue.
Despite the initial investment, competition often sparks innovation, and innovation doesn't stand still.
According to German reports
, AMD is in the process of rounding up another $5.8B USD which is to be spent gradually up to 2008. The company is using the money to further invest into its Dresden location. If this plan goes through successfully, AMD would have made one of its largest ever expansions in its history -- or for that matter, any semiconductor company.
The money is initially slated for Fab 36 and Fab 30 in Dresden, but the German report indicates much of the earmarked money will also go towards a third AMD foundry in the Dresden area, with work beginning this summer. Some of the funds will also be used for employee salaries at the new and upgraded facilities.
The year so far has been exciting, with many announcements from both sides of the camp. Thanks to first impressions of Intel's upcoming Conroe processor, many analysts are now looking at AMD with a great deal of anticipation to see what the company will come out with next,
specifically the K8L architecture
. AMD is currently on track in terms of timely product releases and expects to deliver quad-core desktop solutions in early 2007. The company recently
broke its own 3GHz barrier with its Opteron family
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You simply miss the point
4/6/2006 10:00:49 AM
While the initial post mentioned natural disaster, the post was correct in one regard. Rarely do medium and larger size companies, when they can, locate all items in one geographic region. It often called disaster management, recovery management or some similar name.
Every world class company has practices relating to this. The point is you cannot predict what disaster will occur. Any poster here who says to me he can predict what will happen in Dresden in 3 years is being woefully ignorant. Was the whole east coast of the US going to lose power a few years back? Were planes going to be flown into the world trade center? Was a tsunami going to ravage Indonesia, India and Thailand? Was France going to experience massive revolt and property damage. Even if none of these items had touched a factory in these regions- you can believe the supply chain and workforce were impacted. When working for one of the big 5 accounting firms (then big 8), no partner ever flew with another on the same flight, the loss of two partners (especially in the same practice areas) would have been catastrophic to that part of the business. No insurance ever can compensate for the loss of market share and competitivenes represented by the loss of a main business line or human capital.
RE: You simply miss the point
4/6/2006 2:28:39 PM
> " Rarely do medium and larger size companies, when they can, locate all items in one geographic region. It often called disaster management, recovery management or some similar name"
You miss the point yourself, however. When you locate dependent resources in multiple locations, you
the effects of a disaster, not reduce them.
When you make wafers at location A, dies at B, and packaging at C, a disaster at ANY of those locations affects all the rest.
AMD isn't spreading out manufacturing to reduce the impact of a natural disaster. They do it for other reasons.
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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