AUSTIN, Texas Advanced Micro Devices Inc. said Thursday (July 13) that Singapore-based foundry Chartered Semiconductor Manufacturing Co. Ltd. has started making AMD64 microprocessors using 90-nm design rules at Chartered's 300-mm fab.
The companies said they plan to begin using 65-nm design rules in mid-2007.
Daryl Ostrander, AMD's senior vice president of logic technology and manufacturing, said "the ramp of volume production at Chartered combined with recent announcements in Dresden shows that AMD will have the ability to intelligently scale and flex production in line with customer demand."
The announcement comes as Intel has cleared inventory and sharply lowered prices for many of its MPU products. That price competition affected AMD, which recently announced a 9 percent sequential decline in revenues for its recently completed second quarter, though the company's sales are up by about 50 percent compared with a year ago.
Analysts have warned of possible overcapacity in the MPU sector if both Intel and AMD quickly ramp new fabs. AMD said will expand production in Dresden, Germany, by four times by 2009, with 2005 as the baseline year, as measured in 300-mm wafer equivalents, Ostrander said last month. AMD expects to begin 65-nm production at Dresden in the fourth quarter of this year, and achieve "full conversion" to 65-nm by July 2007, Ostrander said.
He added that AMD and Chartered implemented "select advanced process control modules" at Chartered's Fab 7 to ensure quality and delivery standards which he said "AMD customers have come to expect from our manufacturing operations."
Kay Chai Ang, senior vice president of fab operations at Chartered, said its relationship with AMD has helped the company surpass its schedule for 90-nm production, and "has provided pass-through benefits resulting from our implementation of Automated Precision Manufacturing know-how from AMD."
In June, Ostander said AMD would expand AMD's wafer bumping and test facility in Singapore. Recently, silicon-on-insulator (SOI) wafer supplier Soitec SA (Grenoble, France) said it will spend about $450 million to build a new facility in Singapore to produce SOI wafers there by 2008.
AMD recently announced an agreement with New York State that would provide for state subsidies for a 32-nm fab north of Albany, N.Y. However, the agreement is non-binding on AMD.
In April, Chartered's CEO Chia Song Hwee said Chartered's Fab 7 would have total capacity of about 18,000 wafers per month by the end of the year, It will make components for video game player ICs, microprocessors, network processors and other advanced products.
In 2004, Chartered joined an alliance based in Fishkill, N.Y. with IBM and AMD to develop 65- and 45-nm SOI processes. IBM and AMD use an SOI-based process for their microprocessors. Also in 2004, Chartered took a license for the 90-nm SOI process codeveloped by IBM and AMD.