The No. 2 microprocessor maker also plans to debut quad-core processors next year, which it hopes will help close the gap between itself and market leader Intel Corp. In 2007, AMD promised quad-core designs for servers, workstations and high-end desktops, as well as a dual-core processor for volume desktops.

Sunnyvale, California-based AMD also said it was working on future processors that could mix and match a chip’s building blocks to suit specific applications, and enable partners to add other processors that would link to AMD Opterons through Hypertransport links.

The chipmaker reiterated its commitment to releasing a new energy-efficient notebook processor in the second half of 2007.

The forthcoming quad-core processors would be build on the new microarchitecture that boasts a unique ability to dynamically alter the frequency of each core on the chip to match application workloads, thereby lowering power consumption, AMD said.

As result, AMD promises to increase the performance-per-watt of existing Opteron-powered servers by about 60% through 2007, and by as much as 150% in 2008.

The company’s manufacturing expansion includes a 25% increase in silicon-wafer production at its Dresden, Germany plant, as well as increased output at its Singapore facility and more R&D initiatives with IBM.

AMD also announced plans for a new high-end platform aimed at PC gamers and enthusiasts, codenamed 4×4, which features a four-core processor built on its Direct Connect Architecture. The chip is slated to be released next year and will later be updated to boast eight processor cores, AMD said.