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High Performance Microchip Supply - Under Secretary of Defense ...

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FINDINGS ___________________________________________________________________<br />

Devices, Inc. (AMD) welcomed the European Union (EU)<br />

Commission’s approval <strong>of</strong> investment aid for its next-generation<br />

microprocessor wafer facility, AMD Fab 36, in Dresden, Germany.<br />

The Federal Republic <strong>of</strong> Germany and the Free State <strong>of</strong> Saxony are<br />

providing investment allowances and investment grants <strong>of</strong> up to<br />

approximately $545 million — the highest benefit possible under the<br />

German grants and subsidy program. Hiring for AMD Fab 36 is<br />

underway, and headcount for the new fab is planned to reach<br />

approximately one thousand by 2007. AMD expects to invest<br />

approximately $2.5 billion through 2007 in AMD Fab 36.<br />

Construction <strong>of</strong> a new, dedicated 24-megawatt energy center has also<br />

begun adjacent to the AMD fab. 19<br />

DOD VISION<br />

On October 10, 2003, Deputy <strong>Secretary</strong> <strong>of</strong> <strong>Defense</strong> Wolfowitz<br />

outlined five goals for a “Trusted Integrated Circuit Strategy”: 20<br />

Facilities identification<br />

Product identification<br />

Near-term solutions<br />

Research initiatives<br />

Healthy commercial IC industry<br />

The task force agrees with the need for a strategy and with the<br />

elements identified in Dr. Wolfowitz’s <strong>Defense</strong> Trusted Integrated<br />

Circuits Strategy (DTICS) memo.<br />

Based on the presentations and information it has received, plus<br />

the experience <strong>of</strong> its members, the task force perceives that DOD has<br />

a trusted foundry strategy that addresses its near-term needs.<br />

However it has no overall vision <strong>of</strong> its future microelectronics<br />

components needs and how to deal with them. Technology and<br />

19. See Advanced Micro Devices, Inc. Web site: http://www.amd.com/usen/Corporate/VirtualPressRoom/0,,51_104_543%7E79105,00.html.<br />

20. Memo from the Deputy <strong>Secretary</strong> <strong>of</strong> <strong>Defense</strong>, “<strong>Defense</strong> Trusted Integrated Circuits<br />

Strategy”, dated October 10, 2003, Ref. U16619/03 - see Appendix C.<br />

32 _________________________________________________________ DSB TASK FORCE ON

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