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AMD Mum On Dresden Fab Plans, Fueling Speculation

MUNICH, Germany — Advanced Micro Devices appears to have reached a decision about the future of its production facilities, but it remains unclear if the company is going to build another fab in Dresden, Germany.

While AMD is scheduled to disclose its plans on Monday (May 29), speculation is rampant here as to the processor maker's next move.

For almost a year, AMD has hinted at plans for building a new wafer fab to produce microprocessors. With AMD already running two fabs in Dresden that employ 2,800 workers, many here hope AMD will add a third, especially since fab processes in Dresden have been running well.

Still, CEO Hector Ruiz has not committed AMD to a third Dresden fab. Last December in Singapore, Ruiz said he could foresee a new AMD fab in the city-state. AMD already operates a development center in Singapore and maintains close relations with local foundry Chartered Semiconductor.

"We will have to break ground for a new fab in 2006," Ruiz said last December. He also said the company is considering "multiple options" for the location of its new fab.

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