AMD Signs Option Agreement for New Fab

Chip maker AMD of Sunnyvale, Calif., announced it has signed a Grant Disbursement Agreement (GDA) with the State of New York, establishing a two-year window from July 2007 to July 2009 in which AMD can choose to start building a new 300-mm wafer fabrication facility in Saratoga County, NY. The agreement was signed after New York’s Public Authorities Control Board voted on Dec. 20 to approve a $650 million grant for AMD. The Luther Forest Technology Campus has been selected as the site of the new fab; final decision on its construction will depend on future market demand, AMD said. If it moves forward, construction would begin sometime between July 2007 and July 2009. Construction of the building is expected to take about a year with another year needed for the installation of equipment and tools. The project would create approximately 1200 new jobs, the company said.