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AMD May Build FAB in Big Apple

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June 4, 2006 9:21:12 PM

Quote:
WE NOTED yesterday that AMD is mighty bullish about plans to meet demand for its hot chips and now news reaches us that a new facility could be established in New York state.
Citing sources, Timesunion.com breaks the news, here, that AMD has been in talks over a $3.5bn package to fabricate in the Luther Forest Technology Park.


So, they're expanding FAB-30 to support 300mm wafers and now they plan to build another FAB in NY. That would be nice. :D 

http://theinquirer.net/?article=32153
June 4, 2006 11:32:03 PM

Only problem is the $3.5 billion pricetag. They gonna take out a 2nd mortgage in Dresden?
June 4, 2006 11:58:38 PM

Quote:
They gonna take out a 2nd mortgage in Dresden?
:lol: 
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June 5, 2006 12:52:17 AM

Why not quote the source instead... well, never mind.

Quote:
Speculation about a possible [AMD] deal involving Luther Forest was fueled in recent weeks by comments by state Senate Majority Leader Joseph L. Bruno, R-Brunswick, who said a major announcement was imminent. Also, U.S. Rep. John Sweeney, R-Clifton Park, said Thursday a deal was in the works involving Luther Forest, but he declined to provide details.


http://timesunion.com/AspStories/story.asp?storyID=487857&category=REGIONOTHER&BCCode=HOME&newsdate=6/2/2006

(Something like that...)

Now, just compare the two!
June 5, 2006 1:05:09 AM

Seems like a high priced place for company trying to cut cost.
June 5, 2006 1:50:54 AM

Quote:
Seems like a high priced place for company trying to cut cost.


Well, if true, with 1B ahead and an already 600M investment in loco, I'd try to gain more time, secure the offer & speed up 65nm process manufacturing, asap.

But I find this picture somewhat optimistic... :wink:


Cheers!
June 5, 2006 3:07:17 AM

Quote:
WE NOTED yesterday that AMD is mighty bullish about plans to meet demand for its hot chips and now news reaches us that a new facility could be established in New York state.
Citing sources, Timesunion.com breaks the news, here, that AMD has been in talks over a $3.5bn package to fabricate in the Luther Forest Technology Park.


So, they're expanding FAB-30 to support 300mm wafers and now they plan to build another FAB in NY. That would be nice. :D 

http://theinquirer.net/?article=32153




We love our German friends but I would like to see more high-tech facilities built here in the US :-D

This would be a great development for our national security and our economy :-D


Anywhere in the US is fine with me but NY State sounds like a great idea!
June 5, 2006 11:11:00 AM

Whats with all the AMD rumors here lately? First a possible merger with ATI and now this? I find this very strange since AMD has just committed to an expansion in Dresden.

Either they have just started up a printing press for $100 bills at their new fab or all these rumors are purposely started as a means to exude a greater degree of public confidence. This in the short term could help prop up their stock price which has been faltering here as of late.

I just find it kind of odd how a corporation that is barely in the black after 11 years is going to be able to finance all of these very expensive and risky ventures.
June 5, 2006 11:25:11 AM

Yeah, didn't see this thread either. To me it seems like a rather expensive place tax wise to build something of that magnitude. But then again I have not dug into the corporate tax scheme of NY state. Maybe they should put it in Delaware, friend to all corporations.... joke really. Sorry for starting a parallel thread.
June 5, 2006 11:30:11 AM

Quote:
Yeah, didn't see this thread either. To me it seems like a rather expensive place tax wise to build something of that magnitude. But then again I have not dug into the corporate tax scheme of NY state. Maybe they should put it in Delaware, friend to all corporations.... joke really. Sorry for starting a parallel thread.




They are supposedly getting $1 bil in tax incentives :-D
June 5, 2006 12:54:24 PM

Quote:
Whats with all the AMD rumors here lately? First a possible merger with ATI and now this? I find this very strange since AMD has just committed to an expansion in Dresden.

Either they have just started up a printing press for $100 bills at their new fab or all these rumors are purposely started as a means to exude a greater degree of public confidence. This in the short term could help prop up their stock price which has been faltering here as of late.

I just find it kind of odd how a corporation that is barely in the black after 11 years is going to be able to finance all of these very expensive and risky ventures.


I agree.
But, sometimes, the unexpected happens; corporations like this cannot afford to stand still. True, AMD is going into the red and they urgently need to ramp up that 65nm process asap, which - according to the company - will not see the light until late this year (probably, darn optimistic!); actually, the landscape seems pretty dark for AMD, in the mid-term, with Intel coming up full speed ahead.
I would consider a smart move (if feasible; just speculating), the merger between AMD & ATi: whatever the outcome, I believe the co-processor approach is a very promising alternative for a company which is facing Intel's sweeping upsurge, from top to bottom, with no chance to fire back at it. Co-processors might mitigate that dramatic disadvantage and, there seems to be no lack of willing to suppliers (Ageia, Clearspeed, Xilinx, Altera and others, ending up with ATi & nVidia). Even Intel might follow the trend, sooner or later.
So, for the time being, that merger would make sense, in my opinion, since ATi already has enough highly valuable assets, namely, at the DT & mobile spaces. And, AMD has got Dell, for the server space; quite an achievement.
The bottom line is: If AMD doesn't take drastic moves soon, it'll be risking its own existence as a competitive 2nd CPU manufacturer, which happens to be its core business, no less. My opinion.


Cheers!
June 5, 2006 12:59:45 PM

Sure, the intial breaks, but that is a long term investment.... NY seems like a bad place to be spending alot of money.... but I am sure they probably have some corporate friendly laws to attract large companies.... since so many already have branches in NY.
June 5, 2006 1:17:08 PM

Quote:
Sure, the intial breaks, but that is a long term investment.... NY seems like a bad place to be spending alot of money.... but I am sure they probably have some corporate friendly laws to attract large companies.... since so many already have branches in NY.




They give you tax incentives the first few years and then you pay through the nose later ;-) :lol: 

Not quite that bad... but anyway.
June 5, 2006 1:37:13 PM

This rumor is not about the Big Apple, but rather rural New York State 3.5 hours from New York City. Just to be clear...
June 5, 2006 1:45:23 PM

Quote:
This rumor is not about the Big Apple, but rather rural New York State 3.5 hours from New York City. Just to be clear...




Which is why I said:

Quote:

We love our German friends but I would like to see more high-tech facilities built here in the US Very Happy

This would be a great development for our national security and our economy Very Happy


Anywhere in the US is fine with me but NY State sounds like a great idea!




And got voted down for it? 8O

Why is there so much love in these forums?
June 5, 2006 1:45:59 PM

IBM already has a plant in NY which they payed $3 billion for. How does that compare to prices of plants around the world? Is NY suddenly a great place to be building CPUs?
June 5, 2006 1:52:56 PM

Quote:
IBM already has a plant in NY which they payed $3 billion for. How does that compare to prices of plants around the world? Is NY suddenly a great place to be building CPUs?




Well it has some advantages:

0. IBM which is working with AMD already has some facilities there or near there. So presumably they could work together more efficiently.

1. They are getting $1 * 10^9 in tax breaks.

2. there is a pool of several million workers in the area.

3. there are several major educational institutions nearby.

4. AMD would get good publicity for investing in the US.

5. good on National Security grounds.

6. good for the economy.

7. lots of room to grow.

8. other++.
June 5, 2006 2:17:41 PM

Well for one Joset, i disagree with you on AMD going to the red. This company is not hurting. Sure they dont have as much as Intel going on, but AMD is far from going under. Even if they did go towards bankrupcy or worse, the US government would bail them out. Besides they have been taking quite a bit from Intel lately. I don't disagree that Intel isn't going to do well, but thats besides the point. Intel has had their hard times and especially since they have had to scrap several projects worth billions, AMD is putting the hurt on and they know it. So you're remarks about AMD going under, are far from the truth.

Also with AMD producing in the US that could possibly bring their chip prices down and bring lots of American jobs to the state.
June 5, 2006 2:35:43 PM

I think you misunderstand what joset is saying. He was merely stating that AMD will likely be operating at a loss for a couple of quarters. He did not outright say that AMD was doomed to fail and would go bankrupt. AMD posted an annual loss of around 1.2 billion back in 2002 for example. Yet that was not enough to bankrupt them.

There are a couple of factors to consider here.

1.) Intel has really been putting pricing pressure on AMD. If they hope to continue selling product, they will at some point have to answer with price cuts of their own. In order to maintain profitablility at lower prices, they are absolutely going to have to have 65nm production ramped up and yielding good.

2.) They have yet to show any depreciation on FAB 36. If this does not happen this quarter, I think you could see an SEC investigation into their accounting practices.

These 2 factors alone, had they been in effect in the 1st quarter, would have made it rather difficult for AMD to show a profit at all.

Guess we will all find out when Q2 earnings are released.
June 5, 2006 2:57:08 PM

Quote:
whats with the national security crap linux, you takig the piss or something. everyone outside of america knows the U.S government only mentions that crap when they want to break the law be it international or your own constitutional ones.





linux_0 is unable to answer your post at this time because he/she/it is on a top secret mission violating the US Constitution and International law.
June 5, 2006 3:27:10 PM

Quote:
whats with the national security crap linux, you takig the piss or something. everyone outside of america knows the U.S government only mentions that crap when they want to break the law be it international or your own constitutional ones.


wow I thought the exact SAME thing and linux brought that argument twice, but I did not want to be rude :roll: so let's relax :) 
June 5, 2006 5:10:48 PM

Jackass:

Stillwater is outside of Albany. Which is in upstate NY. The proposed location of this new fab is nowhere near NYC or "the big apple".

It would be sheer madness to build anything in NYC.
June 5, 2006 5:21:51 PM

Quote:
whats with the national security crap linux, you takig the piss or something. everyone outside of america knows the U.S government only mentions that crap when they want to break the law be it international or your own constitutional ones.


Oh quit acting like your country is holier than thou. Every country is corrupt, including Scotland. Politicians are the same whether it's Palestine, China, Israel, U.K. or USA. So STFU in here with the political B.S.- or go feed it to the "other" section under "Community."
June 5, 2006 6:22:39 PM

Start piecing the puzzle together and there is a big picture yet to be discovered. Through some speculating, i have concluded that Dells initial run of Opterons in there servers are just the toe in the water for Dell and AMD, and there is actually been rumoured of large order of Athlons by Dell, which would mean a big fat check for AMD which could mean two things.

1) AMD buys ATI, frees up a Fab to fulfill Dells order
or
2) The new paycheck covers a chunk of the Big Apple's price and Dells orders are fabbed and shipped from within the U.S.

With the recent events like ATI announcing Quad-Crossfire the day after AMDs announcement of co-processors, among other news tid-bits, either scenario seems likely, i'd like to see either situation. Although with nVidia's partnership with AMD and ATI purchase seems unlikely unless AMD and nVidia already discussed it and plan on doing some tech swapping, which could be bad or good. Who knows its all just idle speculation
June 5, 2006 7:03:47 PM

Quote:
at least most places don't deceive themselves.


LMAO. Like Scotland for example? Riiight...

You put too much faith in the news reports you read. Believe me, the majority of people in the USA do not like the direction we're going in. (Polls have confirmed this time and time again)

Again, there's a big difference between what politicians think/do and what the people believe. Unforunately, politicians have hijacked this country (the USA) and no longer answer to it's citizens. They answer to religious and business leaders.

So when you say we deceive ourselves, i take slight offense. Though a lot of people here do wrap themselves in the flag, the majority of us see through the bullsh*it and know full well how f*ucked up we are.

Revolution!!!!!!!!!!!!!!!!!
June 5, 2006 7:09:43 PM

I'm sure you are right about this. There's probably a lot of people in the US that are against most of their president's policies. But he has been re-elected 8O lol

no offense :) 
anyway we are now trapped with a mini-bush here in Canada :cry: 
and that's #%$?& crap
June 5, 2006 7:24:48 PM

Quote:
Well for one Joset, i disagree with you on AMD going to the red. This company is not hurting. Sure they dont have as much as Intel going on, but AMD is far from going under. Even if they did go towards bankrupcy or worse, the US government would bail them out. Besides they have been taking quite a bit from Intel lately. I don't disagree that Intel isn't going to do well, but thats besides the point. Intel has had their hard times and especially since they have had to scrap several projects worth billions, AMD is putting the hurt on and they know it. So you're remarks about AMD going under, are far from the truth.

Also with AMD producing in the US that could possibly bring their chip prices down and bring lots of American jobs to the state.


Guess gr8Mikey has put it better than I did.
Intel's not faring that well, actually; but Intel's got the muscles... money.
Whatever AMD does, NOW, it'll be already too late, product & profit wise. Even if the rumours get materialized (a big IF!), that ROI will take a long time to take off. According to what I know at the moment (I dare to say a lot of us know), AMD means bad times ahead.
Nothing to say about total collapse. That's out of the question.


Cheers!
June 5, 2006 7:47:58 PM

Quote:
I'm sure you are right about this. There's probably a lot of people in the US that are against most of their president's policies. But he has been re-elected 8O lol

no offense :) 
anyway we are now trapped with a mini-bush here in Canada :cry: 
and that's #%$?& crap


You're absolutely right. We did re-elect him. But I think that things have changed dramatically since 2004 though (political climate wise). From 2001 to 2004, all people were concerned about was terrorism (on both sides). There were no real pushes for any domestic reform in this country. Now that terrorism has sort of died down, Americans are seeing just how ineffective Bush really is when it comes to things like Social Security, Immigration, Medicare, Emergency Services (Katrina), and a slew of other important domestic programs. Bush is so arrogant with democrats, he can't get anything passed. Say what you will about Clinton, but at least the man could work with republicans. Bush thinks he can just bully his way in and out of everything.

Bush (and his administration) has made a series of really bad mistakes since 2004. Hurricane Katrina, his high-turnover in appointed positions, his incoherent picks for Supreme Court Justices, war in Iraq, white house scandals, and the domestic spying program have the majority of america pissed off. Let's also not forget Bush's historically low approval rating.

Believe you me, come election time this year, the republicans are going to give up a LOT of house and senate seats. I predict a landslide victory for democrats this year. Thank god for that.

Things won't get any better in the next 2 years- for sure. But once Bush is out, I think things (diplomatically) will be better. 2008's presidential candidates (on both sides) look much, much more promising. 2004 was a train wreck. Democrats made a big mistake w/ Kerry. Roberts would have been a better candidate.
June 5, 2006 8:01:42 PM

Quote:
glad to hear it, however look who the majority(at least of the voting public) voted as president. it is quite scary.

still i don't mean to harp on but i just can't think of a reason for linux to mention it. does he see it as a good sign that companies still want to setup in america or what.

also i would have thought they would have setup in california. isn't that called silicon valley?


My opinion: Actually, any place in North America wouldn't be that great, unless with very strong incentives. It has to do with many background issues, one of them being the way Global Markets work.
Most of North American & European big corporations, have strategic spearheads abroad, where manufacturing costs are lower, where logistics (like transportation) can also help reduce total costs and being closer to high-potential markets (like India & China, for instance), where profits are potentially high, as well.
As for security, well... even if only confidential matters are considered, sometimes it's safer outside than within you own place (Intel, for instance, would certainly not have built its strongest abroad R&D facilities in Israel; and, they're building in Vietname, India and, simultaneously, investing at home).
Intel has logistic facilities in Ireland, for instance; AMD has its critical mass in Germany, in one (if not THE one) biggest European technological park. That's global strategy.


Cheers!
June 5, 2006 8:30:13 PM

Yes- the cost of doing business is pretty high almost anywhere in the USA. The only advantage to manufacturing in america is low shipping costs (if shipping within USA). But even that isn't all that cheap... stupid truckers want 80 cents a mile.
June 5, 2006 8:38:04 PM

Quote:
... stupid truckers want 80 cents a mile.


LOL :p  relax!
what you really need in the US is more weed :) 
June 5, 2006 8:51:02 PM

I agree. How 'bout you fed ex me some?
June 5, 2006 8:59:56 PM

Being a New Yorker, I wanted to add my 2 cents about AMDs forthcoming announcement.

AMD is building a FAB in New York state in order to partner with IBM. Look forward to some interesting news concerning the Power PC. Trust me on this children. AMD would not be coming to NY just to be in the Empire State. It's getting ready to cozy up just a little more with Big Blue. Can you say Opteron Servers??
June 5, 2006 9:13:12 PM

Ahh yes, the new PowerPC chip, oh so powerful. What computer did you say it was going in?
June 5, 2006 9:38:53 PM

Quote:
stupid truckers want 80 cents a mile.
Yeah. Those darned truckers, they have too much money :roll: .
June 5, 2006 9:41:15 PM

Umm... actually... they do make decent money. Any jackass can learn how to be a trucker. And that's my problem with truckers- they should make next to nothing. Along with Janitors, Security Guards, etc.

I'm being an ass, i know.
June 5, 2006 9:54:52 PM

It always good to see More Companys go to the USA.
It also helps AMD.
June 5, 2006 9:55:19 PM

I don't care if your being an ass. Your entitled to voice your opinon. And speaking of voicing, when in the hell is "V For Vandetta" coming out on DVD? Holy shi7, that movie kicked ass.
June 5, 2006 10:01:28 PM

I haven't read it (yet) but I heard the graphic novel is better, and quite a bit different. :wink:
June 5, 2006 10:38:47 PM

Quote:
Quote:

1. They are getting $1 * 10^9 in tax breaks.


dont whip out scientific notation here, some ppl never passed middle school :) 

j/k


that would be cool, would it mean cheaper shipping? cuz 99 cents for a little box is too much :) 


o well, we'll see what happens it would be nice for USA to finally make something instead of mylasia
June 5, 2006 11:24:36 PM

hmm, this is the 2nd time i've seen this spammed
June 5, 2006 11:28:59 PM

Quote:
I don't care if your being an ass. Your entitled to voice your opinon. And speaking of voicing, when in the hell is "V For Vandetta" coming out on DVD? Holy shi7, that movie kicked ass.


You know... I was a little disappointed with that movie. I liked the message, but the execution sucked a bit. Worth seeing for sure, but I ain't buying it on DVD.

Worth owning on DVD: Penn & Teller's Bullsh*it (all seasons).

What can I say... I'm a libertarian gun nut. ;-)
June 5, 2006 11:31:23 PM

u can d/l it like i did :) 
June 6, 2006 12:36:02 AM

Nobody has yet explained how AMD building a Fab in new york state is a 'National Security advantage' :/ 

Not trying to sound anti-US here, I personally supported the Iraq war etc, just completely confused by that statement
June 6, 2006 12:37:06 AM

Quote:
After long meetings of casting chicken bones and reading tea leaves AMD has announced they are going to make the best EVER processor. "We will accomplish this by just offering everything in the world that sounds like it could be a feature into the new products. we will also bring up every old idea and say we are gonna do those too. We dont have the capital to accomplish any of this but we can try vodoo and witchcraft and see what happens." we will plan mergers with all companies and build fabs around the planet. we will make chips that float in the air and plan on making light sabers real by 2008. we are going to only make blue light sabers though red ones would just be too much


:lol:  :lol:  :lol: 

"Just like heaven."


Cheers!
June 6, 2006 12:47:46 AM

Quote:
Yeah, didn't see this thread either. To me it seems like a rather expensive place tax wise to build something of that magnitude. But then again I have not dug into the corporate tax scheme of NY state. Maybe they should put it in Delaware, friend to all corporations.... joke really. Sorry for starting a parallel thread.




They are supposedly getting $1 bil in tax incentives :-D

Wow I bet the German people are happy 1 billion less in heath care or maybe education, ah who cares, it's far more important to prop up poorly run companies that even in their heyday couldn't pull a 1 billion dollar quarter let alone take home 1 billion over a year.
June 6, 2006 12:49:41 AM

Quote:
whats with the national security crap linux, you takig the piss or something. everyone outside of america knows the U.S government only mentions that crap when they want to break the law be it international or your own constitutional ones.





linux_0 is unable to answer your post at this time because he/she/it is on a top secret mission violating the US Constitution and International law.

Oh my a secret agent too, but everyone is right you are full of something.
June 6, 2006 1:42:38 AM

Quote:
Yes- the cost of doing business is pretty high almost anywhere in the USA. The only advantage to manufacturing in america is low shipping costs (if shipping within USA). But even that isn't all that cheap... stupid truckers want 80 cents a mile.


:D 
Yeah, here in Europe I believe it's a bit higher (I do not have the numbers, though; I'm guessing from fuel average prices...).
The "trouble" is: USA + Canada amount to around 330 million people; EU 25, a bit over 450 million; and Japan, about 130 million. Now, India + China amount to about 2,4 thousand million (the same in your billion), or a third of the World's population.
China alone, had a GDP (Gross Domestic Product) growth of 10% in Q1 (https://registration.ft.com/registration/barrier?referer=http://www.google.pt/search?sourceid=navclient&aq=t&ie=UTF-8&rls=GGLJ,GGLJ:2006-05,GGLJ:en&q=china%27s+gdp+growth&location=http%3A//news.ft.com/cms/s/0e6b3c02-cd71-11da-afcd-0000779e2340.html), exceeding the best expectations from five years ago (http://english.people.com.cn/200112/11/eng20011211_86434.shtml). And, you can add up South Corea, Taiwan (or is it Formosa? :wink: ), Singapore, Malaysia, a lot of southern Asian countries and Russia, for what matters. Then, you have Central & South America.
The majority of these economies is not stagnant but growing at a very slow pace; well, except for southern Asian countries. Gradually, this growth boost also drive more potential stable economies, more potential buyers, more potential profit; and, when corporations invest in those countries, governments tend to support those investments by all means, taxes & infrastructure wise (among other benefits). Finaly, manpower is [a lot!] cheaper.
So, Global Markets' trends are being shifted towards Asia, actually, and taking with it large corporations' investments.

I'm sure you are well aware of all this; I just wanted to point out that, there are strong reasons for corporations to invest abroad and to push other economies (paradoxically, sometimes!), in the name of best profit.
This is a simplistic view, of course.


Cheers!
June 6, 2006 6:25:12 AM

Wow I don't think I've seen something go this far off topic since that massive discussion about World War II a couple of months ago.

Seriously, is the AMD story that boring?
June 6, 2006 10:18:12 AM

Quote:
whats with the national security crap linux, you takig the piss or something. everyone outside of america knows the U.S government only mentions that crap when they want to break the law be it international or your own constitutional ones.





linux_0 is unable to answer your post at this time because he/she/it is on a top secret mission violating the US Constitution and International law.

Oh my a secret agent too, but everyone is right you are full of something.



Can't you take a joke????

What is wrong with this planet????
!