Backed by a strong investor, Advanced Micro Devices is expected to expand its production lines and next foundry service providers such as Fab 36 and Fab 38 in Dresden, Germany. During a congress in Munich, Udo Nothelfer, VP, manufacturing and technology, for AMD's Fab 36, gave details on the company's strategy and road map. "AMD's expansion plans are based on the presumption that the trend in the IC industry toward fab-lite and fabless business models will create added demand for foundry services," said Nothelfer.

Struggling chip maker AMD said Wednesday it is cutting 500 workers, or 3% of its global staff, to help the company return to profitability. The cuts are AMD's second big round of layoffs this year.

AMD plans to announce Tuesday that it will split into two companies - one focused on designing microprocessors and the other on manufacturing them. Two Abu Dhabi investment firms will inject at least US$6 billion into the two firms, mostly to finance a new chip factory that AMD planned to build near Albany, NY, and to upgrade one of the company's existing plants in Dresden, Germany.

Intel fell to a new 2 year low. Yahoo fell US$2.04, or 10.8%, to US$16.88. That's a new 5 year low. Dell fell US$1.59, or 9.4%, to US$15.41. That's a new 10 year low. Sun fell 89 cents, or 11.7%, to US$6.75. That's a new 13 year low. AMD fell 87 cents, or 16.9%, to US$4.29. That’s a new 17 year low. Qimonda fell 48 cents, or 32.4%, to $1. That’s a new all-time low, but it still could go lower; there are growing concerns that the memory chip maker is headed for nsolvency.

AMD has announced that its board of directors elected president and COO Dirk Meyer as the company's CEO. Meyer succeeds Hector Ruiz, who will become executive chairman of AMD and chair of the board of directors.

here is trouble in Nvidialand. AMD's new graphics cards apparently have surprised Nvidia, forcing the company to cut the prices of its new cards. Nvidia is adjusting its marketing strategy to GeForce 8800 cards to avoid what has all the signs for a big sales decline on the high end. Of course, that means that it is a good time for graphics cards shoppers.

Shares of AMD fell to their lowest level in nearly 16 yearsafter the company disclosed that it will take US$948 million in charges against earnings when it reports its second-quarter financial performance next week...The size of the writedown was a surprise to investors, who sent the share price down 2.4% to close at US$4.84 a share, the lowest price since August 1992.