Advanced Micro Devices to Close Two Plants in Austin, Texas.

Byline: Kirk Ladendorf

Sep. 26--Advanced Micro Devices Inc., one of Austin's largest technology companies, fell victim to the chip industry slump Tuesday, announcing it will close two older factories in Southeast Austin and cut 1,000 jobs during the next nine months.

The job reduction is one of the largest among Austin-area high-tech companies over the past year.

Only Dell Computer Inc., which has cut more than 5,000 jobs in the Austin area this year, has eliminated more local jobs. Motorola Inc., Austin's largest chip maker, announced it would cut 4,000 semiconductor jobs worldwide in February, but only about 1,000 of those cuts were thought to be in Austin.

AMD said it also will eliminate another 1,300 jobs in Penang, Malaysia, as the company reorganizes its chip packaging and test operations, which are …