AMD breaks ground on new factory

AMD is preparing to begin construction on a new facility which will house its Global Foundries spin-off.

The company on Friday announced the groundbreaking for the new US$4.2bn manufacturing facility in upstate New York.

When completed, the facility will house offices and manufacturing operations for Global Foundries, the manufacturing company spun off from AMD last year with the help of the Advanced Technology Investment Company of Abu Dhabi.

The move was part of a plan by AMD to erase some of its debt and shift its focus to chip design in the wake of a disappointing financial stretch.

Upon its completion in 2012, the company estimates that the new 'Fab 2' plant will create some 6,400 jobs. The plant will produce new chips for AMD as well as third party chipmakers.

"Fab 2 represents the culmination of AMD’s multi-year vision to bring a leading-edge semiconductor manufacturing facility to the United States," said AMD president and chief executive Dirk Meyer.

"Global Foundries is expected to be an ideal technology partner for the entire semiconductor design industry, providing cost-effective access to manufacturing capacity on an unprecedented scale."