Wednesday, November 14, 2007
Advanced Micro Devices Inc. (AMD) is holding discussions about selling its new Fab 38 plant in Germany to Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), according to a report. The report comes from Barron's, which sites Jefferies & Co. analyst John Lau as its source.
''We had heard this speculation before but those talks were deadlocked on approval by German officials,'' he writes in the report. ''We now hear that the talks are on again, probably with greater clarity from the German authorities and further review of AMD's outsourcing strategies.''
AMD has been one of the largest international investors in Germany during the previous decade. Total investment in the Dresden site, including Fab 30, Fab 36, and the Dresden Design Center, was approximately $ 5 billion by the end of 2006.
In its semiconductor facilities Fab 30 and Fab 36, AMD manufactures its processor families. AMDs newest fabrication facility will come online through a major transformation of the company's existing Fab 30, which will be named Fab 38.
Fab 30 is a 200-mm plant, which will be converted to a 300-mm fab in 2009 or so. The transition from 200-mm to 300-mm wafers allows for more than twice as many processors on a wafer.
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