Advanced Micro Devices said on Monday that it will significantly increase its production capacities as a result of upgrading the existing Fab 30, adding more production lines to the Fab 36 and building an additional clean room. The total sum of investment will reach $2.5 billion and will allow AMD to produce up to 45 000 wafers per month.

“As global demand continues to rise for AMD products, we are scaling our manufacturing capacity intelligently to meet our customers' growing needs,” said Hector Ruiz, chairman of the board and chief executive of AMD.

AMD said it is planning to transform the Fab 30, which currently processes 200mm wafers and utilizes 90nm process technology, into Fab 38, which will use 300mm wafers and 65nm process technology. AMD will ramp down 200mm manufacturing in the second half of 2007, with preparation already underway for the ramp of 300mm wafers on 65nm process technology at Fab 38 by the end of 2007.

AMD will also build a new clean room facility on its Dresden campus for Bump and Test requirements, which will support both fabrication facilities. Previously, the clean room facilities for Bump and Test activities were located within Fab 30 and Fab 36. By moving them into a new facility in 2007, AMD has the ability to maximize production space at both Fab 36 and Fab 38. Finally, AMD will install additional production equipment into the Fab 36.

These three projects have the potential to increase Dresden-based manufacturing to a full capacity of 45 000 300mm wafer starts per month by the end of 2008. Compared to today, AMD’s manufacturing capacities by the end of 2008 will be three times higher, a significant event for the company. The investment plans total $2.5 billion with the bulk of the funds going to upgrade of the Fab 30.

“With the addition of Fab 36, AMD took a major step forward in increasing output and scale for its global manufacturing and with this announcement we raise the bar even further,” said Daryl Ostrander, senior vice president, logic technology and manufacturing, Microprocessor Solutions Sector. “As we look ahead to aggressive process technology transitions to 45nm and beyond, the ability to continue delivering these technologies with world-class yields will provide customers with incredibly sophisticated and agile manufacturing capabilities, whereby we can continue to accommodate the increasing demand for AMD products.”