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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.

29 of 189 comments (clear)

  1. size by Anonymous Coward · · Score: 3, Funny

    Why don't they skip to 10 foot wafers?

  2. Cost of labor by ziggyboy · · Score: 2, Insightful

    Wouldn't it be cheaper for them to put facilities that mass produce chips in countries where labor is cheap? Most Intel chips I've seen are marked "Made in Malaysia" or "Made in the Philippines."

    1. Re:Cost of labor by stetsds · · Score: 5, Informative

      In an interview one of the AMD managers said that worker skill was more important than cost in this case. AMD already has a chip fab in Dresden, employing about 2000.

    2. Re:Cost of labor by Barbarian · · Score: 2, Interesting

      I for one am happy to see AMD expanding in a first world country, and employing first world workers, against the trend of sending everything overseas, or of shipping in cut-rate employees from the third world.

    3. Re:Cost of labor by LarsWestergren · · Score: 2, Interesting

      From what I have read, for AMD the choice was between a fab in the US, and in Dresden. I think they picked former East Germany because the previous factory doing well, of the high number of skilled workers who are willing to work for relatively low wages, and the Euro starting to make Europe a more attractive place to do business. So again tech jobs are moving to eastwards, but not quite as far this time. Why they didn't go the Malaysia or Philippines as you mentioned I don't know. Perhaps the current unrest in the world?

      Too bad for US and Asian workers, congratulations to the Germans.

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    4. Re:Cost of labor by romanm · · Score: 2, Informative

      Cost of labor is not the only factor here. By making the company in the Germany the chip becomes an European Union product and is less taxed than the Asian imported chip.

    5. Re:Cost of labor by WIAKywbfatw · · Score: 3, Insightful

      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.

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    6. Re:Cost of labor by 10Ghz · · Score: 3, Informative

      AMD chips are packaged in Malaysia as well (that's what the "made in Malaysia" refers to). But the actual chips are made in Dresden. Intel's chips are also made elsewhere (for example, Israel).

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    7. Re:Cost of labor by Anonymous Coward · · Score: 5, Informative

      greetings from saxony,

      thanks for the congratulations.
      according to hector ruiz the main selling points of dresden wasn't wages (cost of labour is one of the highest in germany due to all the taxes) *but* high density of skilled workers, universities (laugh at it - but dresden was the center of microporcessor design in former eastern germany since the 60s or so :) and other chip makers. for instance infineon raised their first 300 mm fab there. of course many tool companies like applied materials are allready present there. (this was one of the drawbacks of SE-asia btw. nobody has done 300 mm there yet)

      but the biggest selling points were guarantees for the debts they had to take and a huge chunk of money from the state (saxony) and the federation (frg) - several hundred millions.

      also - opposite to the traditional prejudice about german bureaucracy - all the paper stuff was done real quick and without any hassle for amd. but the state of saxony has somewhat of a track record in this regard. you can see all that prejudices justified 100 miles to the north where intel and some shejkh from dubai want to raise a fab too - for several years now. google for communicant and frankfurt.

      one more thing - amd *might* have build their factory in china too. but present us law prohobits exporting certain technologies there.

      have a good day over there

      andreas

    8. Re:Cost of labor by broeman · · Score: 2, Interesting

      Actually, if he said the opposite, I would call it for some kind of racism (not that I would). Employing poor people in poor countries would "force" people in the rich countries to get more "educated" work (and the rich/poor mismatch would be greater) ... but luckily it is not true, the poor would get more money in the hands by even a sh1tty job, increasing their life-conditions (much better than laying in the streets without food).

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    9. Re:Cost of labor by Plammox · · Score: 2, Informative

      AMD also has factories in Malaysia. It's not the wafer fabs, it's where they assemble the CPUs. Same thing goes for Intel.

    10. Re:Cost of labor by Hoser+McMoose · · Score: 2, Insightful

      As others have mentioned, Intel just has their chips packaged in Malaysia, the Philippines, etc. Similarly AMD has almost all of their chips packaged in Malaysia. FWIW most of Intel's actually chip fabs are in the US. Oregon to be exact. They also have a couple plants in Ireland and in Isreal. To the best of my knowledge they do not have any plants in south-east Asia.

      In any case, here's a few numbers for you.. A typical plant these days costs about $2.5 billion dollars to build. Equipment in that plant is about another billion dollars and has a useful life of about 5 years if you can stretch it. The plant as a whole has a useful life of about 10 years before it needs a major overhaul.

      So, simple bit of math tells us that you're looking at a fixed capital cost of somewhere around $4.5 billion. This gives you a rate of depresiation of roughly $1.2 million dollars a day.

      Now, if you pay an average of $100,000/year to the ~1000 employees of the plant, you're looking at roughly $275,000 a day. As you can see, this isn't all that large of a number when you just compare it to depreciation, let along the (rather high) cost of electricity to keep the plant up and running and the huge cost of all the raw materials for producing and cleaning the chips. In short, your cost of labor is VERY low as a proportion of the whole business, but the quality of your employees has a VERY direct relation to the quality of the product (most importantly yields and speed bins) that is coming out of the fab.

      Long story short, you REALLY want to place your fab where you can get skilled workers, not where labor is cheap.

      Of course, the determining factor on where the fab is built is always which government gives the best grants and loans to build the fab.

    11. Re:Cost of labor by Uma+Thurman · · Score: 2, Funny

      Thanks for clarifying your position, you HEMISPHERIST! hehe

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    12. Re:Cost of labor by Dastardly · · Score: 2, Interesting

      Oregon to be exact. They also have a couple plants in Ireland and in Isreal.

      Don't forget Arizona and New Mexico.

      Also, wafer fab is a very automated process. I have seen some Fab lines, and there are maybe 10 people inside the clean room where the lines are running. Then, there are another 10-20 people in wafer test. Then, maybe a few 10s of people in other locations doing other manufacturing or test processes. But, what you end up with is that you are probably talking about less than 100 people per shift that actually handle or in the case fo the Fab watch devices being made. It is possible I am over guessing, and maybe it is closer to 50 people per shift. The most of the other 800-900 people in a Fab are planners, repair techs, and process engineers. The process engineers though are the ones that make the company money. They are the ones who have to get the yields as high as possible. And, 1% of yield is worth a lot more than whatever salary you pay the process engineers.

  3. Re:300 mm? I hope that's wrong. by ComaVN · · Score: 5, Informative

    300 mm refers to the size of the wafer. One wafer contains lots of chips.

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  4. Re:300 mm? I hope that's wrong. by heliocentric · · Score: 5, Interesting

    Yeah, I was impressed when we were making 6" wafers a few years ago and darn proud of it. I remember back when they were the size of a US quarter dollar.

    I worked in final visual inspection on a 6" line and that was very dicy. You'd get someone failing too many parts, whole wafers in some cases due to what their eye saw as too much FLUC. Tricky balancing act since FLUC identification is more of an art than a science (metering thing is a science with acceptable ranges and such) in that we didn't want to ship things that would fail in the wild, but we didn't want to fail too many things and incrase costs (a wafer at the final end has had a lot of effort put into it).

    Oh wait, I just re-read your post. Where you meaning sarcasim or did you not understand what they were talking about?

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  5. Re:300 mm? I hope that's wrong. by affenmann · · Score: 4, Informative

    It's the size of the wafer, the round silicon thing with *many* chips on it.
    See this link (to Intel, inappropriately) for more info.

  6. The Foundation of the Saxony Valley by xcomm · · Score: 2, Interesting

    Thank you AMD for laying the foundation of the Saxony (Silicon) Valley together with Infineon. Thank you for recognizing the talent, education, pracmatism and working power of the patient and friendly Saxony people. Your payback is visible as you are now nearly your break even. Thank for enjoying our great land and cultural as well as industrial heritage.

    May also come the great R&D Transmeta, Big Blue, Samsung and Motorola here. You will get our working power and you will fall love too.

  7. Re:Building size... by FireFury03 · · Score: 2, Informative

    300mm is the diameter of the silicon wafer.
    A large number of dies are constructed on the circular wafer, tested and the wafer is then cut up with a diamond saw. At this point the dies that failed the tests are binned (there certainly used to be a very high failure rate - not sure how high it is these days though).
    AMD makes their CPUs as "flip-chips" these days, thich means that the die is bonded directly onto a PCB, instead of embedding it in ceramic or plastic.

  8. Re:Just so people know ... by TheOnlyCoolTim · · Score: 2, Informative

    Alright - I know my Athlon is bigger than a millimeter squared, but I paid way less than $10,000 for it...

    Tim

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  9. Re:Just so people know ... by digitalunity · · Score: 5, Informative

    Please, for god sakes, do not talk out of your ass. How does this shit get modded up? Just baffles the mind.

    I work in the industry. Your numbers and your assumptions are way off. Fist off, a 200mm polished non-epitaxial silicon wafer is going to cost about $60-75 depending on the specific processing you want done to it. A 300mm wafer isn't a whole lot more. A big piece of the cost of a wafer is the processing, labor, and subsidization of investment capital for the huge plants required to manufacture wafers. The silicon itself isn't terribly expensive. 300mm wafers do not cost an arm and a leg. They are the most cost effective way to produce chips right now and 300mm is the market standard. AMD has been using 200mm wafers in the past but with the larger die size of their newer chips, 200mm is biting into their profits. The problem is silicon wafers are round and CPU dies are square. All of the silicon around the edges is wasted where a whole core won't fit. 300mm makes this wasted silicon a much smaller percentage of the total wafer's surface area.

    Wrong assumption two: 300mm will be here for a while. There are still a lot of companies using 200mm wafers. I know this because I personally make 200mm wafers, and market forecasts has us producing a shit load of 8" wafers for THE NEXT TWO YEARS. 300mm wafer demand is growing, and will continue to grow for quite some time as companies make the transition. I would expect 300mm to be standard until at least '07 or '08. I heard someone talking a while ago about 350mm wafers, but I have a strong suspicion this person was, like you, also talking out their ass. To my knowledge, 300mm is the largest wafer being produced now or in the near future.

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  10. Re:Just so people know ... by sharkey · · Score: 2, Funny
    Please, for god sakes, do not talk out of your ass. How does this shit get modded up?

    Welcome to Slashdot. It's always nice to see new faces.

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  11. Re:What feature size? by glassesmonkey · · Score: 2, Insightful

    The feature size is independant of the fab tooling. AMD will implement the smallest affordable feature size at the time the fab comes on line and most likely will be running two feature sizes. Depending on who is making their chips in two years (probably IBM) they will most likely use the same masks and try to get matching silicon up to production levels.

    The fab is mostly just the facility (shake proof bldg, class 1, 10, 100, etc, wafer handling). What goes into the fab is the latest equiptment. That equipment will support multiple generations of lithography.

  12. Re:Just so people know ... by spectral · · Score: 2, Interesting

    why don't they make square wafers then? I'm seriously not being a troll, I assume that the wafer isn't being rolled around or spun, at least after being manufactured.. so why not use a square wafer, or recycle the silicon that's wasted?

    I'll admit I know nothing of the production of silicon wafers, but it doesn't seem like it'd be harder to get square ones than round ones, or that it'd be impossible to make round ones, chop off the edges to make it square, ship that to AMD, and then melt the edges down in to another wafer.

    And hence, I ask.

  13. Re:Just so people know ... by MrPink2U · · Score: 2, Informative

    Due to the nature in which silicon crystals are grown, they will always come out round. A seed of perfectly aligned silicon is dipped into a crucible of molten silicon. Both are counter-rotated and the seed is slowly pulled from the melt, thus producing a round crystal.

    I have a feeling that making a square wafer out of a round crystal is possible, but it probably isn't cost effective compared to the current ID saw method.

    I worked in the grower industry for a few years but not in a fab. Someone closer to the industry please correct me if I am wrong, but doesn't the waster silicon go back to the supplier for re-purification?

  14. Re:Just so people know ... by Sique · · Score: 2, Flamebait

    Wafers are produced as slices from long, round silicium blocks. They have this form because that's the way they come out of the zone heating ovens used to purify the silicium and melt out all the atoms you don't want on the chip. Non silicium atoms cause defects in the crystalline structure because of different size and number of electrons in the shell.

    That's one of the issues with 300mm wafers (where 300mm refers to about one foot in diameter): The silicium blocks are wider in diameter, thus needing larger zone heating ovens, thus more energy evenly distributed over the whole zone. If the energy isn't exact the right one in the melting zone, the wrong atoms get out.

    The purified silicium blocks then get sawed into thin slices. Larger slices are more prone to breaking during the handling, another issue to overcome while going to larger wafer sizes. They have larger surfaces which could be scratched or damaged.

    On the other hand: Once you have the whole process running, you get more chips from the same area ;)

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  15. Oh, come on. by raygundan · · Score: 2, Insightful

    Nobody opposes freedom for Iraqis. Some people, however, think that maybe we should have kept on with the diplomacy a bit longer before sending in troops. Who is right? I don't know. At the very least, it's fairly expensive international-relations suicide to go invading stuff on your own without the help of the UN. But suggesting that because they do not advocate war, Germany opposes freedom for Iraqis is ridiculous.

  16. Re:A question for the industry people: by Dastardly · · Score: 2, Insightful

    See my earlier post. US companies are not for the most part moving FABs to Asia. Mostly packaging and final test. I go through the reasons for it, but it basically boils down to packaged processors are about 10x as bulky as the die on a wafer. Therefore, it takes about 10x the labor just to move them to and from the package line or test equipment.

  17. Re:Just so people know ... by imsabbel · · Score: 2, Interesting

    they cant produce square wafers.
    This kind of cleaning works that way:
    you have a silicion rod and move is SLOWLY through a heating device that heats it up enough to let non-silicon atoms migrate.
    The end that leaves the heated area slowly cools, and (if all goes right) silicon atoms create a monocrystal. The wrong atoms stay in the heated area and wander to the end which is cut off.
    in reallity, you often need many passes...
    now, if you would use a square rod, the corners are HIGHLY sensitive and very likely to cause defects in the crystal...

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