PRESS RELEASE DATED SEPTEMBER 25, 2001

NEWS RELEASE


CONTACTS:
John Greenagel
AMD Public Relations
(408) 749-3310
E-mail: john.greenagel@amd.com
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Exhibit 99.1


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."

-more-


2

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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For more AMD news and product information, please visit our virtual
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