AMD fab ramp pulls rug from under IBM deal

A year ago Posted 21 July 1998 -- a year ago US reports said that Advanced Micro Devices (AMD) has pulled the plug on a deal it had with IBM Microelectronics to manufacture its K6 processors. Although AMD will retain the option of using IBM Micro fabs in the future, the reason why it has decided not to begin using them is because it has ramped up its own manufacturing capacity, according to the reports. IBM Microelectronics, however, has advanced 0.18 micron process technologies at its fabrication plants, while AMD is still using its 0.25 micron process to manufacture its chips. According to distributors in the UK, there is now no shortage of AMD K6 parts while demand for the microprocessors is still high. This means that it is likely that AMD has managed to increase output at its existing plants. Next year, a state of the art AMD fab is scheduled to open in Dresden, Germany. No-one from AMD was available to comment on the reports at press time. ®