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AMD to invest $2.5 billion in German factories

news.zdnet.com — Advanced Micro Devices, the No. 2 maker of microchips for personal computers, said on Monday it will spend an additional $2.5 billion to upgrade and expand its two factories in Germany.

Who dugg this? Made popular May 30, 2006

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  • NomenNescio, on 10/12/2007, -6/+16Because it's a German company. That's why.
  • davidswelt, on 10/12/2007, -2/+10Not any more. Given high unemployment, workers in Germany are more than willing to do a good job. Besides, we're talking about highly skilled people working in chip production - it's not like your fitting bolts on cars in an assembly line (even that would probably done by robots...). Germany has always been pretty good at per-worker productivity.
    Taxation of work (including employer's expenses for the national health insurance scheme and similar things) is fairly low compared to other European countries, now that they've implemented a variety of reforms.

    Unions still might be too strong - difficult to form an opinion (I don't live in Germany any more).

    It seems that Eastern Germany is pretty attractive if you're in need of highly skilled employees. And Dresden is a beautiful city, close to Berlin.
  • DigeratiPrime, on 10/12/2007, -0/+4AMD is an American company.
    http://finance.google.com/finance?q=amd
    http://en.wikipedia.org/wiki/AMD
  • julesp, on 10/12/2007, -2/+6The article said The Sunnyvale, Calif.-based company, referring I believe to AMD, and I checked on google finance, none of the executives seemed German to me(although I may be mistaken). So again, Why not invest in the US? Davidswelt gives a good starting point to answer the question, but I wonder if any Digger out there knows more.
  • treelovinhippie, on 10/12/2007, -2/+5That's some expensive frankfurts! :D
  • ice2004, on 10/12/2007, -0/+3AMD is the best Chip maker who said they are the 2nd
  • chatwithaninja, on 10/12/2007, -2/+4Because of our crippling tax code. Companies spend a huge percentage of their income on accountants just so they can deal with our over complicated tax system. Why do that when you can just go to another country and not worry about it?
  • klepto, on 10/12/2007, -3/+5Indeed it quite does, and so this is a good thing, for the community of the factory and its actual customers because this means better/more technology and jobs.
  • MorningCoder, on 10/12/2007, -0/+2For a 2.5 billion investment, the German goverment might have given them a big tax incentive.

    Besides, "Made in Germany" sounds more "Advanced" than "Made in USA" or "Made in China".
  • deepsub, on 10/12/2007, -2/+3"Why not invest in the US"

    Cheap labor + modern municipal infrastructure == better profits for AMD
  • Sacky, on 10/12/2007, -0/+1number 2? uh huh i dont think so.....
  • cebbs, on 10/12/2007, -0/+1yeah amd kicks ass
  • rolandrs, on 10/12/2007, -1/+2because the US doesn't need the investment. Germany's economy has been terrible in recent years, dragging the whole eurozone down despite it being home to lots of huge corporations.
    Its great to see a company look after the people in its own backyard rather than just abuse the 3rd world for higher profit margins.
  • pennystocks, on 10/12/2007, -0/+0AMD has always been a favorite one of my stock picks.
  • kraemate, on 10/12/2007, -4/+4Good news! AMD processors are going to be made in Germany..not China/taiwan/malaysia.
  • RadiantBeing, on 10/12/2007, -1/+0Every time Intel plans on opening a new chip fab, countries around the world clamor to offer them the most attractive incentive packages. Low taxes, grants, free real estate, free health care, free transport infrastructure built to the factory, etc etc. What do the countries get in return? Jobs, workers educated on the job in high tech, incentives for university students, a boost for the local economy, a local pool of expertise that will attract investment from other firms -- in other words, a huge halo effect emanating from the fab.

    America can't be as lavish because of our laws and culture. We prefer a free market and liberals won't stand for "corporate welfare." Thus, AMD and Intel make fabs in other countries. I'm sure AMD has a sweet deal with the German government. And judging by this new investment it is working out well for both parties.
  • trollenlord, on 10/12/2007, -3/+2I think if they manufacture in Europe the products for European market they can avoid some protective tolls at the EU borders and some other nasty things. This might actually lead into slightly more competitive AMD in Europe, decrease the prices slightly and increase their logistics speed.
  • CedanticPunt, on 10/12/2007, -6/+4Precisely, why outsource to the US?
  • diggnationdevon, on 10/12/2007, -4/+1Yeah
  • julesp, on 10/12/2007, -9/+4Why not invest in the US? Anyone know?
  • inactive, on 10/12/2007, -12/+6Germany needs the workers i guess
  • Sukino, on 10/12/2007, -9/+3High wages/lazy workers/strong unions VS [you add]
  • Big_E103, on 10/12/2007, -10/+4AMD rocks intel sucks *****
  • CedanticPunt, on 10/12/2007, -14/+2My kitten's name is Mittens.
  • wmoisis, on 10/12/2007, -18/+5My cat's breath smells like cat food.

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