AMD Signs Grant Disbursement Agreement for New FAB Option
- Agreement Marks Progress Towards New State of the Art 300mm Wafer Fabrication Facility in New York -
SUNNYVALE, Calif. --
AMD (NYSE:AMD) today announced it has signed a Grant Disbursement Agreement (GDA) with the State of New York, establishing a two-year window from July 2007 to July 2009 in which AMD can choose to initiate the building of a new state of the art 300mm wafer fabrication facility in Saratoga County, NY. AMD’s execution of the agreement comes after New York’s Public Authorities Control Board (PACB) voted on Wednesday to approve a $650 million grant for AMD.
AMD anticipates the need for a new facility and has selected the Luther Forest Technology Campus as an ideal site. The timing of the final decision depends on a number of factors, including future market demand, but with a growing customer base, leading technology and the hope for a truly fair and open competitive playing field, AMD remains optimistic about prospects for continued momentum in the years ahead.
If conditions become right for AMD to move forward, construction would begin sometime between July 2007 and July 2009. Similar to AMD’s other fabrication facilities, construction of the building is expected to take about a year with another year needed for the installation of equipment and tools. The project has the potential to directly create approximately 1,200 new jobs, along with thousands of indirect jobs through supporting construction and infrastructure projects.
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This release contains forward-looking statements regarding AMD’s potential new 300mm wafer fabrication facility in New York, construction timelines and future market demand, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company’s current expectations. Risks include the possibility that the company will not achieve its current product introduction schedule and that customer adoption and infrastructure support of AMD’s products will not occur as expected. We urge investors to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 25, 2005 and AMD’s quarterly report on Form 10-Q for the quarter ended October 1, 2006.
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