AMD is in discussion with the government of Saxony to built a third fab in the state, in order to boost its production capacity. The new feb would require a €2.5 billion investment and could create 1000 new jobs.
Currently AMD already has one production facility in Dresden, Germany. The second fab, Fab 36, is expected to be ready for production by the end of this year. Fab 36 required a 2.5 billion euro investment and government subsidies accounted for 660 million euros. It is expected that a third firm could receive a similar kick-back.
Hector Ruiz, chief of AMD, said the final decision will be made by next summer. He expects that by the beginning of 2008 the company will be in need for a new fab to keep up with demand.
AMD's first fab in Germany, Fab 30, opened in 1999 and employs 2000 people, with a further 1500 jobs created in supply industries around the fab. Read more at The Inquirer