Advanced Micro Devices may have decided where to build its 2nd chip Fab in Dresden, Germany.

The reported $1.3 billion (1.1 billion euro) fab could see a groundbreaking ceremony as early as next week if a German parliament committee approves a loan guarantee of $396 million (336 million euros).

The proposed plant would make AMD neighbors with its Munich, Germany-based partner Infineon, which also has a plant in Dresden. Upstate New York was also rumored to be a possibility for the next AMD plant, which would have put it in close proximity to partner IBM's 300mm East Fishkill, N.Y., fab..

AMD could not be reached for comment.