Advanced Micro Devices said Tuesday that it would add Chartered Semiconductor as a chip foundry beginning in 2006.
The decision will add another source of production to AMDs own lines, which include Fab 32 and the upcoming Fab 36, both in Dresden, Germany.
Both of AMDs fabs are expected to carry the company into the 65-nm generation, although Chartered is expected to add AMDs manufacturing technology, called Automated Precision Manufacturing or APM, into its first 300-mm, 90-nm wafer fab due to come on line in 2005.
What the addition does for AMD, however, is to add another source of supply, which will serve as a hedge if the chip company cant execute a transition to 65-nm manufacturing lines. One analyst said he viewed the decision as a gamble by AMD to increase its market share, in the face of repeated stumbles by its chief competitor, Intel Corp.
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