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AMD Planned About 200 More Austin Job Cuts in 2002 as Fab 25 Shifted to Flash

In May 2002, AMD planned about 200 additional Austin job cuts as it transitioned Fab 25 from microprocessor production to flash memory.
From TheFinanceBase Team2 min to read
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In May 2002, EE Times reported that AMD planned to eliminate about 200 additional jobs in Austin as it shifted its 200-mm Fab 25 from microprocessor production to flash memory. The planned cuts were tied to the factory’s changing work; they were separate from AMD’s earlier, broader announcement to close Austin’s Fabs 14 and 15.

What AMD announced about Fab 25

EE Times reported on May 9, 2002, that AMD was ramping a 0.18-micron flash process at Fab 25 and planned about 200 additional Austin job cuts. An AMD spokesman told the publication by phone that flash production required fewer process steps and fab workers than AMD’s PC microprocessor processes. AMD’s processor production had moved to Fab 30 in Dresden, according to the report. EE Times, May 9, 2002

The spokesman, whom EE Times did not name, said: “The transition to flash memory production will extend the life of Fab 25,”

How the 200 cuts differed from AMD’s earlier Austin restructuring

The Fab 25 cuts were described as additional to a September 2001 restructuring announcement. AMD then said it would close Fabs 14 and 15 and forecast approximately 2,300 position reductions worldwide by the end of the second quarter of 2002, including about 1,000 positions associated with the Austin closures. Those figures described the earlier worldwide plan, not the separate 200-position Fab 25 reduction. AMD, September 24, 2001

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EE Times projected that, after the older-fab closures and additional cuts, AMD would have just over 3,000 Austin employees—about 1,200 fewer than a year earlier. That was a projection made in 2002, not a present-day company headcount. EE Times, May 9, 2002

Why the shift mattered to AMD’s flash business

The report placed the factory transition against a difficult period for AMD’s flash memory business. It put AMD’s flash revenue at $160 million in the first quarter of 2002, down 18.4% from $196 million in the fourth quarter of 2001, and attributed the decline to eroding average selling prices. These are historical figures reported at the time, not current financial results. EE Times, May 9, 2002

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AMD also planned to bring MirrorBit into volume production in Austin. EE Times described MirrorBit as storing multiple bits in one cell, allowing greater storage density and lower cost with smaller die sizes. This describes the company’s plan and the technology as presented in 2002; it does not establish whether MirrorBit products are available today. EE Times, May 9, 2002

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How to read the story today

This is a historical report about AMD’s 2002 workforce plans and production strategy, not a current layoff notice or an account of present-day Fab 25 operations. AMD’s 2025 annual report describes wafer production through TSMC and GlobalFoundries for specified product groups and reports a late-2024 restructuring plan that reduced the global workforce by approximately 4%. That later context does not establish the present status or use of the former Fab 25 site, or update the 2002 Austin staffing figures. AMD 2025 annual report

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