AMD Breaks Ground on New Chip Facility

philthedrill writes "AMD announced that they have broken ground on Fab 36, which again will be located in Dresden, Germany. The 300 mm fab is expected to start volume production in 2006. There's more information at CBS MarketWatch." AMD will be moving from its current 200 mm wafer process, and looking to save money through the higher efficiency of the new process, as well as keep up with expected demand for their next generation processors. The MarketWatch article also contains some speculation about probable partners for AMD.

Comments

Re:Cost of labor

[WIAKywbfatw]

I doubt they built a fab plant in Germany to keep down labour costs.

As an EU nation, Germany has employment rights that are a lot more stringent than in the US or South East Asia - we're talking about a higher minimum wage, a cap on weekly working hours, sick pay, maternity and paternity leave, pension contributions by the employer, favourable redundancy payments, etc.

More likely is that other economic factors - tax breaks, being inside the Euro zone, etc - were the deciding factors.