AMD has denied recent rumors that its spin-off, The Foundry Company, is looking for partners to build a fab in China or cooperate with local foundries.

The rumor mill was abuzz with claims that The Foundry Company officials visited Shandong, China and contacted the Jinan city government as part of its efforts to set up a production facility in the region. AMD did sign a memorandum of understanding with the government concerning technology exchange, education and cooperation on chip development.

However, keep in mind that several months ago AMD strenuously denied rumors it was about to spin-off its production facilities, although we can't give these Chinese fab rumors much credence.

More here.