by Brooke Crothers
September 4, 2008 7:40 PM PDT

Advanced Micro Devices chip plant spin-off rumors won't die. Probably because they may be partially--or more than partially--true. But the timing is the big unknown. AMD claims the launch of its so-called Asset Smart strategy is not imminent.

The latest rumor was triggered by a blog at the Austin American Statesman that said AMD may "spin-off of its manufacturing operations within two weeks." The blog cites a Wall Street securities analyst, John Lau with Jefferies & Co. AMD said that's not so. "We hope to get it done by the end of the year. There's been no change on our end," said Drew Prairie, an AMD spokesman.

"I wouldn't expect an urgent phone call from me in the next two weeks," he said, implying that the timing would not be in this time frame. AMD has two chip factories in Dresden, Germany, that are at the center of the spin-off speculation. Prairie also cautioned that speculation about the structuring of the spin-off may not be accurate. "I wouldn't take that assumption from (analysts) as definitive.

There's a lot of nuances and gray areas, as to what we're going to be doing. A lot the speculation is painting things as black and white. I don't think, come announcement day, it will be that black and white." He also reiterated that the proposed chip plant in upstate New York "would be a critical part of our manufacturing."