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AMD set to select Dresden for next-gen fab – report

Awaiting $945m in loans, grants

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Dresden will be chosen for AMD's next chip plant on the back of a €700 million ($825 million) loan guarantee and a further €100 million or more in grants, all from local and national German government.

So said Reuters this weekend, citing an unnamed "industry source" - undoubtedly AMD staffers given their use of the word 'we' in reference to the company gaining the approval of the local administration.

According to the source, AMD is waiting on approval for €336 million of that €700 million cash injection. If the deal goes through as planned, the chip maker could announce the decision to build its plant in Dresden at the end of the week.

Essentially, the federal and state administrations will lend AMD money to build its multi-billion dollar 300mm wafer fab in order to guarantee the jobs the construction and subsequent operation of the plant will require. Reuters notes that unemployment in the area stands at 13 per cent, so it's no wonder government is keen to encourage AMD to expand in Dresden if it means more jobs. AMD already employs around 2000 people.

Last week, it emerged that AMD was choosing between expanding its existing, 200mm fab in Dresden or building a plant - almost certainly in partnership with IBM - in East Fishkill, New York State. East Fishkill is site of IBM's most up-to-date US plant and home of the giant's advanced semiconductor research facility, where the two firms are already co-developing 65mn and 45nm process technologies. ®

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