AMD has extended its chip-technology agreement with IBM to 2011, confirming earlier speculation.

Under the new agreement, AMD and IBM will develop new transistor, interconnect, lithography and die-to-package connection technologies. Efforts will focus on 32-nanometer and 22-nanometer manufacturing processes.

AMD will use these processes to manufacture chips late in this decade and beyond, the company said. Working with IBM on exploratory research will allow AMD to identify technological challenges and to find solutions sooner, it said.

Research and development will take place at three locations: IBM's Watson Research Center in Yorktown Heights, New York; the Center for Semiconductor Research at Albany Nanotech in Albany, New York; and IBM's chip plant in East Fishkill, New York.