Advanced Micro Devices, the world's second largest maker of x86 microprocessors, said it will build a new facility in New York State, and that the plant will start the production in 2010 and will cost $3.2 billion, in forms X-Bit Labs.

"The plant will initiate manufacturing in 2010 and will allow AMD to increase manufacturing capacities by 50% when compared to expected 2008 level. The incentives offered by New York include a $500 million grant for construction, $150 million in R&D subsidies to be used over 5 years, and $250 million tax rebates", declared Preston Snuggs, AMD's vice president of logic manufacturing operations, for Reuters news agency.

AMD's representatives also announced that the company intends to build another facility on its Dresden campus for Bump and Test requirements. "Previously, the clean room facilities for Bump and Test activities were located within Fab 30 and Fab 36. By moving them into a new facility in 2007, AMD has the ability to maximize production space at both Fab 36 and Fab 38. Additionally, AMD will install extra production equipment into the Fab 36," further writes X-bit Labs.

Just two days ago, Intel announced it has opened the manufacture's third chip plant which will be based on 65-nanometer processes, producing a wide range of multicore microprocessors.

The new facility is based in Leixip, Ireland, and its development needed $2 billion investment in order to boost the market share on the dedicated 65 nanometers segment.

This is the third plant to be opened, and the first in Ireland, as the manufacturer preferred, up until now, to build its facilities in the U.S., more precisely, in Arizona and Oregon.