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Saturday, March 7, 2009

AMD SPINS OFF GLOBALFOUNDRIES CHIP MAKING UNIT

GlobalFoundries is expected to start manufacturing next-generation 32-nanometer processors by the middle of next year.
GlobalFoundries, the chip-manufacturing spin-off of Advanced Micro Devices (NYSE: AMD), officially opened for business Wednesday and laid out its preparations for moving to next-generation 32-nanometer products.
The joint venture of AMD and Advanced Technology Investment Co. said it will expand its Dresden, Germany, manufacturing capacity by bringing a second facility online in late 2009. Called Fab 1, the Dresden complex will dedicate one of its two facilities to making 45-nm chips, which AMD is in the process of transitioning its products to, and the other to 32-nm processors.
The numbers refer to the size of the microprocessor circuitry. The smaller the size, the more transistors can be placed on a piece of silicon, which translates into much higher performance without increasing power consumption. The move to 32-nm is seen as the next big jump in processor performance. A nanometer is a billionth of a meter.
GlobalFoundries, which will be AMD's main manufacturer, also plans to begin construction this year on a 32-nm manufacturing facility at the Luther Forest Technology Campus in Saratoga County, N.Y. Called Fab 2, the facility is expected to employ 1,400 people. GlobalFoundries, headquartered in Silicon Valley, Calif., currently employs 3,000 people worldwide.
AMD's larger rival Intel also is preparing its fabrication plants, or fabs, for the move to 32-nm chips. The company last month said it would invest $7 billion in the United States over the next two years to upgrade existing fabs for production of the next-generation technology. Intel (NSDQ: INTC) plans to start making 32-nm products in the fourth quarter of this year, while AMD expects GlobalFoundries to do the same by the middle of next year. The manufacturer, however, hasn't disclosed a production timetable.

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