AMD Opens New 300mm Fab 36 In Dresden, Germany

DRESDEN, Germany — October 14, 2005 —At a ceremony attended by top German government officials and leaders from across the semiconductor industry, AMD (NYSE: AMD) today announced the grand opening of its 300 millimeter (mm) Fab 36 in Dresden, Germany.

“The on-schedule, on-plan opening of Fab 36 is the latest achievement in AMD’s growing track record of flawless execution on our manufacturing strategies and goals,” said Hector Ruiz, chairman of the board, president and chief executive officer of AMD. “In AMD Fab 30, using our patented Automated Precision Manufacturing (APM) capabilities, we have had tremendous success in rapidly transitioning to new technology generations and quickly achieving mature yields. Fab 36 is designed to continue this rock-solid consistency, ensuring we can effectively and efficiently meet the growing demand for AMD 64-bit solutions worldwide.”

With the production ramp in Fab 36 progressing on schedule, the company intends to make 90nm production shipments in the first quarter of 2006 and begin 65nm production by the end of 2006. AMD has set a goal to be substantially converted to 65nm in Fab 36 by mid-2007.

Capacity gained through the use of larger 300mm wafers, combined with the speed and efficiencies enabled by APM, plays a fundamental role in the company’s growth plans for the next several years. Now in its third generation, APM consists of hundreds of AMD patented and patent-pending technologies that dynamically and automatically optimize fab operations. This unique automated decision-making capability has allowed AMD to accelerate its responsiveness to customer needs, more quickly transition to new technologies, improve quality and operate at increasing levels of efficiency.

AMD plans to add production output on a steady year-to-year basis, giving it the potential to ship as many as 100 million units in 2008, while also keeping fab utilization at consistently high levels. This will help AMD meet growing demand for its award-winning AMD64 processors and achieve its objectives of capturing a significantly larger share of the x86 microprocessor market in the coming years.

“Fab 36 represents the pinnacle of AMD manufacturing and technology innovation,” said Daryl Ostrander, senior vice president, logic technology and manufacturing, Microprocessor Solutions Sector. “With our pioneering automation capabilities, state-of-the-art submicron process technologies developed in partnership with IBM, and the unique talents of our employees around the world, we can consistently deliver on our promises to customers now and in the future.”

After extensive due diligence, AMD chose to build Fab 36 in Dresden based on the successful track record of AMD Fab 30, the financial incentives package provided by the Free State of Saxony and Federal Republic of Germany, and the large number of talented engineering and technical personnel in the region.

“Our employees are the true foundation of our competitiveness,” said Hans Deppe, corporate vice president and general manager of AMD in Dresden (Fab 30 and Fab 36). “Because of their spirit and dedication, we have progressed from the ground breaking of Fab 36 to its grand opening in less than 24 months. Further, we accomplished this while simultaneously operating Fab 30 at top performance and efficiency levels.”

AMD’s presence in Dresden has been a tremendous mutual success for the company, the Free State of Saxony, Germany and the European Union. AMD’s investment in the region, one of the largest foreign investments in Germany within the last decade, has created approximately 7,000 direct and indirect jobs in Saxony and the surrounding regions. It has been instrumental in establishing Dresden as the thriving center for semiconductor innovation in the EU.

About AMD
AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to helping its customers deliver standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information, visit www.amd.com.

Cautionary Statement
This release contains forward-looking statements concerning Fab 36, including its production ramp, output and capacity, demand for AMD64-bit solutions, and capturing an increasing share of the x86 market, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company’s current expectations. Risks that the company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that global business and economic conditions will worsen resulting in lower than currently expected sales in the fourth quarter of 2005; that Intel Corporation’s pricing, marketing programs, product bundling, new product introductions or other activities targeting the company’s microprocessor business will prevent attainment of the company’s current microprocessor sales plans; that demand for computers, and, in turn, demand for the company’s microprocessors will be lower than currently expected; that adoption of AMD64 products by OEMs will not continue to occur as expected; that the company may not achieve its current product and technology introduction or implementation schedules; that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to maintain its market positions and that solutions providers will not timely provide the infrastructure to support the company’s AMD64 technology. We urge investors to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 26, 2004 and the Quarterly Report on Form 10-Q for the quarter ended June 26, 2005.