EXHIBIT 99.1

                  APPLIED MICRO CIRCUITS CORPORATION ANNOUNCES
                      $200 MILLION STOCK REPURCHASE PROGRAM

SAN DIEGO, Calif--September 17, 2001--Applied Micro Circuits Corporation
[NASDAQ: AMCC] today announced that its board of directors has authorized a
stock repurchase program of up to $200 million over the next 12 months. Shares
will be repurchased in the open market, through block purchases or otherwise, at
times and prices considered appropriate by the company. The program is effective
immediately.

"This repurchase program reflects the confidence our Board of Directors and
management have in our country, our industry and AMCC," said Dave Rickey,
Chairman of the Board and Chief Executive Officer. "Our strong balance sheet
allows us to implement this program, which we believe is in the best interests
of our shareholders."

The timing of purchases and the exact number of shares to be purchased will
depend on market conditions. As of September 17, 2001, AMCC has approximately
302 million shares of common stock outstanding.

AMCC Overview

AMCC designs, develops, manufactures and markets high-performance,
high-bandwidth silicon solutions for the world's optical networks. AMCC utilizes
a combination of high-frequency analog, mixed-signal and digital design
expertise coupled with system-level knowledge and multiple silicon process
technologies to offer integrated circuit products that enable the transport of
voice and data over fiber optic networks. The company's system solution
portfolio includes PMD, PHY, framer/mapper, network processor, traffic
management and switch fabric devices that address the high-performance needs of
the evolving intelligent optical network. AMCC's corporate headquarters and
wafer fabrication facilities are located in San Diego. Sales and engineering
offices are located throughout the world. For further information regarding
AMCC, please visit our web site at http://www.amcc.com or call our shareholder
information line at (888) 982-AMCC (2622).

This news release contains forward-looking statements, including statements
regarding the stock repurchase program, that are subject to certain risks and
uncertainties, including, but not limited to, those associated with
unpredictability and volatility of the price of the Company's common stock and
the securities of other companies in the Company's industry, the performance of
and conditions in the United States and world financial markets, the policies
and actions of the United States and other governments, and the general
political, economic and business conditions in the United States and elsewhere,
as well as the "Risk Factors" set forth in the Company's Annual Report on Form
10-K for the year ended March 31, 2001, and the Company's other filings with the
Securities and Exchange Commission. Actual results could differ materially, as a
result of such factors, from those set forth in the forward-looking statements.