14 DAY TRIAL // Advanced Micro Devices’ manufacturing arm, which is also known as the Foundry Company, a foundry service provider, looks rather optimistic at the current economic downturn, considering it a good anti-cyclical investment opportunity. At the same time, the company reckons the challenges that are approaching, stated two of its top managers.
The market is rather unstable at the moment, and even top players in the foundry business like TSMC admit it, the manufacturing subsidiary of AMD is consciously heading towards that market. The Abu Dhabi investment company ATIC has already been reported to plan taking over the majority of the manufacturing firm with two production lines in Dresden. While receiving top orders for microprocessor fabrication from the Sunnyvale chip maker, the company will walk the road of foundry services.
Managers of AMD's still-subsidiary demonstrate optimism. Gerd Teepe, Director of AMD’ Dresden Design Center, believes that the crisis will end soon, and that the electronics industry will turn stronger than ever. “We don't expect long-term market predictions to be reduced significantly,” he said in an interview with EE Times Europe. “The prospects for microelectronics remain excellent. After all, microelectronics is a crucial technology for many other industries such as healthcare, automotive, and industry automation. This innovation machine is simply indispensible.”
The idea does not refer to only a few quarters, but involves a many-year commitment, as David Greenlaw, Director Process Integration, stated, “This is not about a few quarter, but about many years”. Both representatives also talked about a focus on what will have to be changed at the 3000-employee subsidiary. Basically, they will have to adapt the internal processes from current captive microprocessor production to the product mix required for foundry service providers. Moreover, sales and marketing also need to undergo modifications to fit the changed environment.
The Foundry Company is set to offer the latest technologies and the smallest geometries. “Competing in the 65-nm market is competing through price. This is something we don't want to get into,” explained Teepe. The company plans to offer leading-edge technologies and follow an aggressive roadmap. At the moment, the fab produces 45-nm geometries and plans moving to 32nm and 32-nm SOI production in the first half of 2010, while mass production should begin in 2011.
At the same time, the company will also focus on volume. “High volumes are very important. It is the only way to get high yields,” Teepe said. “Our winning formula is capacity expansion. And we have the funds to expand.” Its offering is expected to include complex devices with high performance and low power dissipation, such as chips for smartphones, graphic applications and PC-related circuitry.
According to Teepe, manufacturing excellence is an important factor in a challenging environment. “If you manage to get your yield up faster than your competitor, you gain much more than a well-trained and motivated crew costs,” he said, adding that the staff in Dresden is extremely well trained and stable. The production capacity in Dresden will be maintain unchanged, and the company also plans building new plants in upstate New York, but the headquarters will be in Silicon Valley. The company plans to remain close to possible customers this way, while seeking major fabless firms, predominantly in the U.S, revealed Greenlaw.