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Costing $3.5 billion, the new fab is set to open in 2010

Earlier this month, DailyTech brought you details about AMD's plans to open a fabrication facility in the state of New York. Although details at the time was sketchy and most of the information was unconfirmed, AMD's chairman Hector Ruiz this week announced that AMD will indeed be opening a facility in New York's Luther Forest Technology Park in Saratoga County.

AMD is expected to be spending upwards of $3.5 billion by the time the plant is finished. The plant is going to be home to more than 1000 employees and AMD says it should be completed sometime in 2010. In previous reports circulating online, it was indicated that New York state had been busy putting together an incentive package for AMD worth somewhere around the $1 billion mark. For New York state, having AMD build a new facility will introduce a big boost for the economy -- new jobs are created and the state gets more taxes. AMD is investing a lot into expansion recently, as the company also announced plans to spend roughly $2.5 billion to increase capacity at its Fab 30 facility in Dresden, Germany.

On the other side of the fence, Intel is making an effort to expand as well. Being AMD's biggest competitor, Intel announced too that it would build a new facility in Europe. Spending about $2 billion, Intel will open its first 65nm facility in Europe. Called Fab 24-2, it will be a major expansion on Intel's existing Fab 24 and will bring 300mm wafer production into the production line. Intel says that Fab 24-2 will be one of its largest.

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By hans007 on 6/24/2006 6:38:22 PM , Rating: 2
is amd, crazy?

have you seen their stock financials. they have maybe a billion in cash period.

i hav eno idea how they are going to afford these plants, but well.. if say intel well kicks their ass in the next 2-3 years and they stop making money these plants wont even get finished being built.

i love how it says 2010. fabs take maybe 2 years to build (thats how long fab30 took) so in reality they can cancel this any time in the next 2 years if they dont have the cash to pay for it.

RE: .
By bbomb on 6/24/2006 7:23:48 PM , Rating: 2
Companies dont spend just money they have. They get lines of credit and spend that credit while keeping some cash on hand. I dont know of any major company that uses cash only.

OT: Has Taiwan, Hong Kong, and China run out of space for massive plants now?

RE: .
By crystal clear on 6/24/2006 8:59:23 PM , Rating: 2
"OT: Has Taiwan, Hong Kong, and China run out of space for massive plants now? "
They have run out of political goodwiil-"Bring those jobs
back home (USA/EU)" is the message CEOs are getting.
USA/EU are huge markets & they have the power to do some
arm twisting,if the CEOs dont take the hint.

RE: .
By Viditor on 6/24/2006 11:34:28 PM , Rating: 2
have you seen their stock financials. they have maybe a billion in cash per

As of last quarter, AMD had $2.63 Billion in cash. This almost definately much higher this quarter.

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