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AMD Plans $2.5B for German Expansion

U.S. semiconductor maker Advanced Micro Devices Inc. said Monday it will invest $2.5 billion, or nearly 2 billion euros, to expand its production facilities in the eastern German city of Dresden.

The company, based in Sunnyvale, California, opened its factory for 64-bit processors in Dresden last October. It now plans to expand that plant.

The expanded capabilities will include additional 300-millimeter wafer production facilities, as well as a new clean-room facility for the final stages of manufacturing.

AMD, which makes microprocessors, flash memory devices for the computer, communications and consumer electronics industries, already employs several thousand people in Dresden.

The U.S. firm's investments have underlined Dresden's status as a relatively prosperous part of the former communist East Germany, which in general remains economically depressed.

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