AMD is going to announce very soon that it is going to build a new chip plant in Dresden, Germany. This plant will cost about 1.1 billion euro, and the groundbreaking ceremony could possibly be held next week if a German parliament committee approves a 336 million euro loan.
"The only thing we need now is approval from the parliament committee on the loan guarantee," one source said. "We could have the groundbreaking for the new plant as soon as the end of next week."
On Wednesday industry sources said AMD had short-listed Dresden, in the German state of Saxony, as a possible location for a planned new chip plant. A spokesman for AMD in Germany confirmed the company was holding talks about a new plant, but declined to give details.
The federal and state governments would jointly guarantee up to 80 percent of a 700 million euro loan package for the new plant, the industry source said.
The U.S. chip maker, creating hundreds of new jobs in the Dresden region where unemployment stands at around 13 percent, could also count on grants of more than 100 million euros, the source said.
AMD already employs some 2,000 people in its existing plant in Dresden, also home to an advanced memory chip factory of German chip maker Infineon Technologies.
The U.S. chip maker has also considered building the new plant in East Fishkill, New York, according to industry sources