 AMD has been gaining ground on market leader Intel |
Advanced Micro Devices (AMD), a maker of computer chips that is taking on bigger rival Intel, plans to spend $2.5bn (�1.3bn) on increasing output. AMD said it would install new equipment and expand facilities at factories in the German city of Dresden.
The company has been eating into the market share of rival Intel and is looking to meet increased demand.
It also wants to solve severe supply problems that have hampered its efforts to grow in past years, analysts said.
"As global demand continues to rise for AMD products, we are scaling our manufacturing capacity intelligently to meet our customers' needs," said AMD boss Hector Ruiz.
Earlier this month, computer producer Dell announced that it would be using AMD chips in multiprocessor servers due out later this year.
The deal was the latest in a number that has boosted AMD's market share above 20% for the first time in four years.
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