AMD invests $2.5 billion in Germany

has announced that it plans to invest $2.5 billion to expand its microprocessor manufacturing capacity over the next three years by adding additional 300 millimetre wafer production capabilities in

.

The expansion will take place through a conversion of the company’s existing Fab 30, which will be named Fab 38. AMD will also expand Fab 36’s existing 300mm capacity and build a new clean room facility to handle the site’s growing Bump and Test requirements, which is one of the final stages of the manufacturing process where wafers are packaged and prepared to be shipped.

The transition from 200mm to 300mm allows for more than twice as many processors on a wafer.

AMD will ramp down 200mm manufacturing in the second half of 2007, with preparation already underway to start production of 300mm wafers on 65nm process technology at Fab 38 by the end of 2007. The plant will produce the latest generations of AMD microprocessors, reaching full capacity by the end of 2008.

The majority of the investment will go into new equipment in the Fab 38 facility. AMD said the expansion 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.