EW Daily News 06/02/2004 11:23:08 - AMD wins approval for €545m European fab aidAMD wins approval for €545m European fab aid David Manners
The European Commission has approved investment aid of €545m for AMD’s new fab in Dresden. The money comes from the German federal government and the state of Saxony. The amount represents 22.67 per cent of the total $2.4bn cost of building the fab which is the highest amount allowed under German subsidy rules.
The new fab will be called Fab36 and is sited alongside AMD’s existing facility in Dresden called Fab30. It will be capable of 65nm processing on 300mm wafers.
The EC reckons the new fab will create about 1035 jobs within AMD and another 1170 jobs in Saxony.
In approving the grant the EC considered whether the microprocessor market is in decline and the number of new direct and indirect jobs it would create.
The 22.67 per cent grant is within the 31.5 per cent allowable by the EC for such grants under the 1998 Multisectoral Framework on regional aid for projects costing over €50m.