Advanced Micro Devices, a major manufacturer of...

Advanced Micro Devices, a major manufacturer of integrated circuits based in Sunnyvale, has announced that it will begin construction of a $186-million wafer fabrication plant near Dublin, Ireland, later this year. The move will help strengthen its foothold in the European telecommunications industry, the company said.

Advanced Micro, which has similar plants in Austin and San Antonio, Tex., as well as Sunnyvale, said it expects to employ 650 people in the next four years, and that could grow to 1,000 when the plant reaches full operation. The Irish government is helping to defray part of the cost of the expansion through development grants, AMD said.

The Dublin area was selected over several U.S. and European locations, the company said, because of its large, well-educated work force, supply of engineers and good access to transportation, energy and communications.

“One very important consideration to us was access to Common Market countries,” said James B. Downey, senior vice president of operations. “AMD is strongly committed to the European market and this facility will help us to better serve our customers there, while at the same time tapping an excellent source of engineering talent.”

The Palo Alto biomedical firm Collagen Corp. has signed an agreement with Zimmer Inc. to develop and market products for use in bone repair and other orthopedic applications.

Collagen said the development program will focus on collagen- and other biologically based products that encourage repair of bone tissue. Applications might include bone implants, spinal fusion or treatment of certain fractures.

Zimmer, based in Warsaw, Ind., is a developer, manufacturer and marketer of orthopedic, surgical and other hospital products. It is a unit of New York-based Bristol-Myers Co.

Syntex Corp., Palo Alto, said that its Syva Co. unit has received Food and Drug Administration clearance to market a test for herpes.

The test, developed jointly with Genetic Systems Corp. of Seattle, can provide a diagnosis in 30 minutes, compared with several days required for conventional testing.