IBM to use more AMD chips as Fab 36 starts

HECTOR RUIZ and a veritable battalion of AMD spin doctors, hacks and security officials assembled here in Fab 36 this morning to hear about the chip firm's plans for its big new factory.

What was really interesting was that after being frisked for cigarettes and cameras and being sniffed at by a bored looking dog, inmates of the fab came to peer at the strange collection of hacks listening to the opening remarks.

Security is tight because Gerhard Schroeder, still just the Chancellor of Germany, is having a chat with us all soon.

Hector Ruiz, CEO of the firm, said that Fab 36 is a marvel of execution in time and on budget and AMD expected no less of its German Dresden team. The new factory, he said, was coming on line at the perfect time. AMD has never had a stronger position. The Opteron family is changing the industry, he claimed.

AMD has been rapidly expanding its footprint in the enterprise, he said. Eighty five of the top 100 companies in the world use Opteron including BP, Chrysler, Merrill Lynch and others. The CEO of BP is Lord Browne, who is also a director of Intel's board.

IBM will move into more SKUs using AMD chips in 2006, claimed Ruiz. Microsoft's support had been incredibly important. The launch of Vista 64 will have a big impact on AMD.

Fab 36 will double AMD's chip capacity, said Ruiz. Fab 30 will continue to build microprocessors, may build chipsets and it's not out of the question that AMD might upgrade the Fab 30 technology. He said AMD will be able to fully utilize the factory for some years to come.

Production from Fab 36 will come in the first quarter of next year, said Ruiz. AMD is currently on a 50 million clip rate, but potentially it can make 100 million in a year, he said.

Production at Fab 36 will start at 90 nanometres but during the year will ramp 65 nanometres as fast as it can, said Ruiz. This means that wafer starts, probably for the first four or month, will be created using the 12-inch wafers as a test of concept before the 65 nano tech, bought in from IBM is deployed, just to sort of bed it in.

Ruiz thanked outgoing Chancellor Gerhard Schroeder for aiding AMD to achieve its goal of fair and open competition. Last time we were here in Dresden, Schroeder singled AMD competitor Intel out, eventually resulting in several European countries changing the rules on tendering for microprocessors.

Pictures

The hacks. On the left Kai, next to him Andreas S

The execs. On the left, Ruiz, on his right Deppe

Analysand Nathan Brookwood talks to a luminary from AMD

Most interesting of all, folk in bunny suits gaze down at the hackish throng