AMD announces closure of Fabs 14 & 15

AMD ANNOUNCES CLOSURE OF FABS 14 AND 15



SUNNYVALE, CA-SEPTEMBER 25, 2001-AMD today announced it is accelerating key

components of its strategy to reduce costs and enhance the financial

performance of its core businesses.   The company will close Fabs 14
and 15,

two semiconductor wafer fabrication facilities (fabs) in Austin, Texas that

primarily serve AMD's foundry operations.  AMD will also reduce and

restructure other manufacturing activities as well as administrative support

associated with these facilities. 



These changes will result in the reduction of approximately 2,300 positions,

or approximately 15 percent of its worldwide workforce, by the end of the

second quarter of 2002. Approximately 1,000 of these positions are

associated with closing the fabs in Austin.  The balance of the reductions

will result from realigning and restructuring back-end activities in Penang,

Malaysia.  The company will provide severance packages and outplacement

services to affected employees.



"These actions will allow us to reduce costs without impairing our new

product development activities in pursuit of long-term growth opportunities.

We will focus our organization around our two most promising opportunities -

flash memory devices and PC processors," said W.J. Sanders III, chairman
and

chief executive officer.  "We will treat all employees affected by
these

actions with fairness and respect, consistent with our values and our

commitment to our people."





Fabs 14 and 15 have a long history at AMD and are the company's oldest fabs.

The two facilities were originally constructed in 1984 and 1985.



AMD will take a one-time charge between $80 million and $110 million

covering these restructuring activities and other special charges in the

current quarter. When fully implemented, these actions are expected to

result in an overall annual cost reduction of approximately $125 million.



About AMD



AMD is a global supplier of integrated circuits for the personal and

networked computer and communications markets with manufacturing facilities

in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and

Standard & Poor's 500 company, produces microprocessors, flash memory

devices, and support circuitry for communications and networking

applications. Founded in 1969 and based in Sunnyvale, California, AMD had

revenues of $4.6 billion in 2000. (NYSE: AMD).



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