During a phone interview with InformationWeek, Dirk Meyer, CEO of AMD, said the chip maker is on track to deliver 32nm CPUs by the middle of next year, with testing of the new chips to be complete by the end of this year and volume production to begin in Q4 2010. This would put AMD roughly a year behind Intel in shifting to the smaller manufacturing process, as AMD's rival chip maker is expected to produce 32nm chips by Q4 of this year.

AMD closes its deal with the Abu Dhabi government tomorrow for the creation of AMD's manufacturing spinoff, the Foundry Co., who will create the new chips. Once finalized, the deal will lift about $1.1 billion in debt out of AMD's books, freeing the company to concentrate on designing new parts.

It remains to be seen if AMD will also integrate major graphics in a 32nm process through the Foundry Co. as well.

Image Credit: AMD