AMD’s presence in Dresden has been a great success for the company as well as the free state of Saxony, Germany and the European Union. AMD’s Dresden fab is now the only production site for microprocessors. AMD’s investment in the region has created more than 7000 direct and indirect jobs in Saxony and the surrounding regions. In order to turn the Albany region into a new high tech valley, New York has invested heavily in it. With the generous subsidies offered from the state of New York, AMD is motivated to build a new fab in the area. However, replicating Dresden’s success is a challenging task for AMD.
Taking a look at the people, processes, platforms and programs, there is no doubt that Dresden’s success is no coincidence. From the people and processes point, Saxony was the most industrialized area in Germany before World War II. The Dresden region manufactured many items such as computing machines, transformers, lenses and cameras. Dresden had many well educated, highly skilled employees, and Technology related Universities in the location. After reunification of Germany, Dresden attracted many foreign technology companies to invest in the region, causing it to become a cluster of microelectronics. From the platform and programing’s point of view, after AMD built its new fab in the region, it sent 150 employees from Dresden to Austin and Sunnyvale in order to train the core piece of AMD’s organization. The knowledgeable German team quickly empowered AMD’s operational platform, the way the system functions, and made some refined changes to the processes in order to improve efficiency in the operation. Additionally, with Germany’s precision engineering and innovation, Dresden’s fab produced the world’s first 1 GHz microprocessor.
As AMD grows, Dresden will not remain the only production site. AMD has decided to build a new fab plant in Albany, New York with the intention of replicating Dresden. The state of New York had invested