AMD, which is in a price war with larger rival Intel, is to announce the move on Wednesday afternoon, CNET said, quoting an unidentified source.
AMD officials did not immediately return calls seeking comment.
Falling prices for its chips were the main cause behind AMD's $600 million loss in its most recent quarter. After gaining market share from Intel in 2005 and most of 2006, AMD went through a dramatic downturn as Intel rolled out powerful processors and cut prices on older ones last year.
Under Chief Executive Hector Ruiz, AMD has been banking on a forthcoming chip code-named Barcelona that has four processing cores and is due out soon.
"If there's any take away, it raises questions about the strength of that core management team and the direction and strategy that's being executed," said American Technology brokerage analyst Doug Freedman.