AMD Opens New 300mm Fab 36 In Dresden, Germany

October 14, 2005

At a ceremony attended by top German government officials and leaders from across the semiconductor industry, AMD today announced the grand opening of its 300 millimeter Fab 36 in Dresden, Germany.

“The on-schedule, on-plan opening of Fab 36 is the latest achievement in AMD’s growing track record of flawless execution on our manufacturing strategies and goals,” said Hector Ruiz, chairman of the board, president and chief executive officer of AMD. “In AMD Fab 30, using our patented Automated Precision Manufacturing (APM) capabilities, we have had tremendous success in rapidly transitioning to new technology generations and quickly achieving mature yields. Fab 36 is designed to continue this rock-solid consistency, ensuring we can effectively and efficiently meet the growing demand for AMD 64-bit solutions worldwide.”

With the production ramp in Fab 36 progressing on schedule, the company intends to make 90nm production shipments in the first quarter of 2006 and begin 65nm production by the end of 2006. AMD has set a goal to be substantially converted to 65nm in Fab 36 by mid-2007.

Capacity gained through the use of larger 300mm wafers, combined with the speed and efficiencies enabled by APM, plays a fundamental role in the company’s growth plans for the next several years. Now in its third generation, APM consists of hundreds of AMD patented and patent-pending technologies that dynamically and automatically optimize fab operations. This unique automated decision-making capability has allowed AMD to accelerate its responsiveness to customer needs, more quickly transition to new technologies, improve quality and operate at increasing levels of efficiency.

AMD plans to add production output on a steady year-to-year basis, giving it the potential to ship as many as 100 million units in 2008, while also keeping fab utilization at consistently high levels. This will help AMD meet growing demand for its award-winning AMD64 processors and achieve its objectives of capturing a significantly larger share of the x86 microprocessor market in the coming years.

“Fab 36 represents the pinnacle of AMD manufacturing and technology innovation,” said Daryl Ostrander, senior vice president, logic technology and manufacturing, Microprocessor Solutions Sector. “With our pioneering automation capabilities, state-of-the-art submicron process technologies developed in partnership with IBM, and the unique talents of our employees around the world, we can consistently deliver on our promises to customers now and in the future.”

After extensive due diligence, AMD chose to build Fab 36 in Dresden based on the successful track record of AMD Fab 30, the financial incentives package provided by the Free State of Saxony and Federal Republic of Germany, and the large number of talented engineering and technical personnel in the region.

“Our employees are the true foundation of our competitiveness,” said Hans Deppe, corporate vice president and general manager of AMD in Dresden (Fab 30 and Fab 36). “Because of their spirit and dedication, we have progressed from the ground breaking of Fab 36 to its grand opening in less than 24 months. Further, we accomplished this while simultaneously operating Fab 30 at top performance and efficiency levels.”

AMD’s presence in Dresden has been a tremendous mutual success for the company, the Free State of Saxony, Germany and the European Union. AMD’s investment in the region, one of the largest foreign investments in Germany within the last decade, has created approximately 7,000 direct and indirect jobs in Saxony and the surrounding regions. It has been instrumental in establishing Dresden as the thriving center for semiconductor innovation in the EU.

Source: AMD