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Repercussions Of AMD/IBM Agreement

The agreement to work with IBM on future chip-making technologies puts in question AMDs relationships with other companies including Taiwan foundry UMC.
The agreement to work with IBM on future chip-making technologies puts in question AMDs relationships with other companies including Taiwan foundry UMC.


The US company has already terminated a process development relationship with UMC. AMD is now considering a number of options concerning its joint venture plan for a $3bn 300mm facility with UMC. The plan is currently the subject of a memorandum of understanding (MoU). No construction work on the project has yet been carried out. If the MoU were terminated, UMC would probably have to seek investment from another partner.


The new processes from AMD/IBM will be aimed at improving microprocessor performance and reducing power consumption. The work will be based on advanced structures and materials such as high-speed silicon-on-insulator (SOI) transistors, copper interconnects and improved low-k dielectrics. The agreement includes collaboration on 65 and 45nm processes.


AMD and chief scientist Bill Siegle reports: "We are set to commence production of our 90nm solutions in Q4 2003, so we are now expanding process-technology development efforts for our next generation of processors targeted at 65nm and below."


The companies expect first products based on the new 65nm technology to appear in 2005. The development will be supported by AMD and IBM engineers working at IBM's Semiconductor Research and Development Center (SRDC) in East Fishkill, New York. Work is expected to begin by January 30, 2003.

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