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AMD Dealt Double Blows

Sunnyvale, Calif. – AMD took it on the chin twice today, first announcing it was closing its two oldest fabrication plants then receiving news that Gateway would no longer use its processors.

The two Austin, Texas plants, officially called semiconductor wafer fabrication facilities, were opened in the mid-1980s. Their closing and other company changes will result in the loss of 2,300 positions by the end of the second quarter in 2002. About 1,000 of those are associated with the plants and the remainder will take place in Malaysia.

Gateway said the decision to move to an all Intel line up is part of its on-going effort to simplify its production and engineering costs.