AMD is to build a 300mm-wafer fab in Saratoga County, New York. The $3.5bn plant will be used to punch out 32nm processors, comments made by senior staffers suggest.

There have been plenty of rumours of late that the chip maker was planning to construct a fab in the US and that it had its eye on New York State. Media reports have claimed the company has been offered $1bn in incentives by local government to help make up its mind.

The plant will be located in the Luther Forest Technology Park. Work is expected to begin in July 2007, with construction scheduled for completion in July 2009. Chips should start rolling off the production lines some time in 2010.

Reading between the lines of comments made by AMD CEO Hector Ruiz in New York last week, the plant will produce 32nm chips. Intel CEO Paul Otellini said he expects his firm to be shipping 32nm parts in that timeframe.

At the end of May, AMD said it will spend at least $2.5bn upgrading its 200mm-wafer fab in Dresden, Germany, to produce 300mm wafers. It also intends to expand its current 300mm-wafer fab, Fab 36, also located in Dresden. ®