Monday, July 27, 2009

AMD Subsidiary Building $4.2 billion on New York Facility

AMD's manufacturing subsidiary -- Global Foundries is building a $4.2 billion chip manufacturing facility in upstate New York. With its new facility, the AMD spin-off will now be able to directly compete with archrivals Intel and other semiconductor manufacturers.
According to AMD semiconductor manufacturing remains expensive, and hence outsourcing will increase. However, analysts said it will be difficult for the New York chip foundry arm business (fab) to compete with Taiwanese industry leaders.

Chip manufacturers have posted significant losses in recent quarters because they have been unable to run at capacity.

AMD had launched Globalfoundries as a JV with Abu Dhabi-backed Advanced Technology Investment Company in May, a move that led to Intel accusing it of breaching a 2001 patent cross-license agreement.

The U.S. Company holds a 34.2% stake in the venture and ATIC holds the remaining 65.8%. Their New York foundry is scheduled to begin production in 2012, said the company.

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