AMD will open a new manufacturing plant in Dresden this week that will triple its capacity.

Fab 36, will produce chips on 300mm silicon wafers. Intel, AMD's much larger rival will also increase capacity with two new 300mm fabs.

AMD obviously hopes that the increased scale will increase its armoury against Intel. In particular, convincing Dell, the worlds PC leader that it can handle demand.

Dell has been notable for refusing to use AMD.

The battle is extremely unequal. Intel supplies the chips for 4 out of 5 PCs sold. AMD however has seen a an increase in market share.

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