AMD to make GPUs in Dresden fab

The first fabs can produce the GPUs now and second will be able to produce graphic chips once they build it.

We are still upset that back in early June, ATI's CEO misled us on this acquisition thing and he used the production incompatalities as an example. The big suit didn't want us to know that you can adjust the Dresden to pump 90 nanometre and later 65 nanometre graphic chips.

We believed it would take AMD a lot of time to start producing the graphic chips in its Dresden fab but it turns out that AMD might even start the less complex chip design even by the end of the year, if possible.

Fab 36 is currently working at 15 to 20 per cent of its possible capacity and AMD has to ramp up production ASAP. Once the yields are steady it will get AMD is much better position versus Nvidia, as Nvidia's TSMC-produced chip should end up more expensive than AMD's ATI one.

This won't be easy for MADATI and our crystal balls predict a lot of problems in ramping up the GPU production in Dresden but this is an imperative for the new company. µ