It will find $2.5 billion to re-fit and expand its existing 200 nanometre Fab 30 in Dresden. It will decrease production at the 200mm fab in the second half of 2007, and pump up the volume on 65 nanometre tech on 12-inch wafers "by the end of 2007".
Essentially the existing 200 millimetre fab will be refitted and rejigged, and have its name changed to Fab 38. It will also build test facilities at Dresden in a separate building.
The amount of money put into Dresden will amount to $8 billion with this announcement, and AMD has the backing of Saxony, which is interested in creating more jobs in the region.
Hans Deppe, MD of AMD Dresden, said the investment of more money into its fab facilities in Germany mean that jobs will be secured until well into the next decade.
By the end of 2008, AMD reckons Dresden capacity will be 45,000 12-inch wafer starts a month. ยต
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