AMD Announces Closure of Fabs 14 and 15.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 25, 2001 AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. 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 Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. 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 A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. 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 San´ders n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood. 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 Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. for the personal and networked computer and communications markets with manufacturing facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 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 Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. , AMD had revenues of $4.6 billion in 2000. (NYSE NYSE See: New York Stock Exchange : AMD). Visit AMD on the Web For more AMD news and product information, please visit our virtual pressroom at www.amd.com/news/virtualpress/index.html. Additional press releases are available at www.amd.com/news/news.html. Note to Editors: AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies. |
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