AMD Offers Update On Manufacturing Capacities

In the facility, AMD is producing chips on a 300-millimeter wafer using a 90- nanometer process. The 300-millimeter wafers are the preferred die size in chip manufacturing these days because they yield more processors on each wafer. In essence, it means more chips can be produced at a lower cost.

"This ramp of the AMD 36 Fab was the fastest in AMD's history," said Hans Deppe, vice president and general manager, AMD Saxony. AMD broke ground on the facility in September 2003 and had equipment running 12 months later, he said.

AMD, Sunnyvale, Calif., has been manufacturing Athlon 64 and Sempron processors in Fab 36 while Opteron has been manufactured in the older Fab 30. Deppe said this decision was based on customer demand for products.

The continued ramp of AMD's second fab is important because the chip maker's market share is growing and it needs to ensure that it can supply demand as it works to further increase its share this year. AMD also has contracted with Singapore-based Chartered Semiconductor Manufacturing to help with manufacturing in the second half of the year. AMD expects to be manufacturing using a 90-nanometer process in that fab, company officials said.

AMD also said it has been producing a significant number of 65-nanometer test chips in parallel with 90-nanometer products at the fab, in preparation for volume 65-nanometer production later this year. The 65-nanometer process allows chip manufacturers to pack more transistors on smaller dies, yielding more, advanced chips for the money.

AMD's Fab 30, located next door to Fab 36, is producing 200-millimeter wafers on a 90-nanometer processor. Intel has for some time touted its ability to manufacture chips on a 300-millimeter wafer using the latest 65-nanometer process.

Fab 36 remains on track to begin 65-nanometer production shipments in the second half of this year, and AMD still expects to completely convert to 65-nanometer production by the middle of 2007, said Deppe.

"The increased capacity provided by Fab 36 will contribute to our goal of doubling total production output from 2005 through 2008. We are positioned better than ever to serve our customers' long-term needs and achieve our aggressive growth objectives," Dirk Meyer, president and COO of AMD, said in a statement.

Deppe also said 45-nanometer product design has started. Intel said it achieved 45-nanometer SRAM yields earlier this year.