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In 1966 a new fab cost $14m.
Global Foundries' new fab may sound expensive at $4.2bn, but that's an order of magnitude less than $40bn.
The government of Abu Dhabi is also investing up to $6bn over the next five years, both in the new Fab 2 and AMD's current fab in Dresden.
With a new fab in Dresden, Germany, coming on stream, it should be capable of churning out 40m units by 2001.
Besides the new fab in Borneo, this year they also opened a foundry on the mainland.All this is nothing beside the capacity that is about to come onstream in China.
The new 'Fab Europe' site opens today.
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"There aren't that many companies who can afford to build new fabs".
In Shanghai alone two new fabs are under construction, another two are on the drawing board, and over a dozen more are in the early planning stages.
By taxing imported chips much more heavily, says the SIA, China has had a big impact on where fabs are built mainly by attracting Taiwanese producers to build new fabs in Shanghai, Songjiang, Beijing and Suzhou.
Spin-offs make sense because there are too many firms doing the same thing on too small a scale, and the need to finance new fabs is a drag on the firms' main businesses.
The urge to splurge on new fabs is spreading in Japan, so that even minor producers such as Ricoh, a copier maker, are rushing to boost capacity.But hang on.
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