Advanced Micro Devices said Thursday that it has broken new ground on its next PC processor manufacturing facility--just a stone's throw away from its first plant in Dresden, Germany.

AMD will build the new plant, or fab, to keep up with technology and to help meet anticipated demand for its chips. The company said it expects to spend $2.4 billion over the next four years to construct and later upgrade the plant, dubbed AMD Fab 36. The plant is scheduled to begin turning out chips in volume in 2006, AMD said.

Read more: CNet News.