ARIZONA NEWS

Microchip to close Arizona facility amid cost concerns

Dec 6, 2024, 6:30 PM

Microchip...

Microchip says it intends to close down it Arizona silicon wafer production facility in 2025. (Nicolas Loran)

(Nicolas Loran)

Microchip Technology Inc. said Monday it intends to shut down its Tempe computer chip factory as it tries to curtail costs amid an anticipated slowdown in sales.

In a regulatory filing released after the markets closed, Microchip (Nasdaq: MCHP) CEO Steve Sanghi – who moved back into the company’s top job at the end of November – said that after he did a deep dive into the Chandler-based company’s operations, he “determined that certain actions are necessary,” according to a statement emailed to the Business Journal.

Those actions include shutting down the company’s silicon wafer fabrication facility in Tempe, affecting some 500 workers. The closure is expected to occur between July and September 2025, which coincides with the company’s fiscal year 2026 second quarter. Microchip anticipates saving roughly $90 million annually by shutting down its Tempe fab, according to a Dec. 2 filing with U.S. Securities and Exchange Commission.

A Microchip spokesman would not comment Monday on the exact number of workers who would be impacted by the decision.

Microchip had already shut down the Tempe factory temporarily for two weeks earlier this year, along with its two other factories in Oregon and Colorado, in an effort to cut costs. The company expects that after shuttering the Tempe factory, manufacturing will be transitioned “as needed” to other facilities, according to the SEC filing.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

election results...

Kevin Stone

Arizona Legislature sends bill to speed up election results to Gov. Hobbs

The Arizona Legislature on Thursday sent a bill designed to speed up election results to the desk of Gov. Katie Hobbs, who has indicated she would veto it.

5 minutes ago

A lottery ticket from an Avondale Fry's won $50,000 in a recent Powerball drawing....

Kevin Stone

Lottery ticket from West Valley supermarket wins $50,000 in Powerball

A lottery ticket purchased at an Avondale supermarket won $50,000 in Wednesday’s Powerball drawing.

1 hour ago

vaccinating chickens egg prices...

Kevin Stone

Arizona egg farmer wants to vaccinate chickens from bird flu, but government won’t allow it

A prominent Arizona egg farmer says vaccinating chickens from the bird flu would lower prices, but the federal government won’t allow it.

2 hours ago

Valley events calendar...

KTAR.com

Valley events calendar: Here’s a rundown of things to do around metro Phoenix

Our Valley events calendar keeps you up to date on the wide variety of activities across the Phoenix area.

4 hours ago

The evacuation order for the Brady Fire was lifte on Wednesday....

KTAR.com

Evacuation order lifted for residents near Brady Fire south of Prescott

The evacuation order for a community threatened by the Brady Fire south of Prescott was lifted on Wednesday evening, authorities said.

6 hours ago

off-road vehicle crash...

Kevin Stone

2nd teen in off-road vehicle crash at Phoenix canal has died

The second teen involved in an off-road vehicle crash at a Phoenix canal last week has died, authorities announced Wednesday.

7 hours ago

Sponsored Articles

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Fiesta Bowl Foundation

Join us for the 52nd annual Vrbo Fiesta Bowl Parade

The 52nd annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe returns on Saturday, December 28, at 10 a.m.

...

The UPS Store

How The UPS Store is giving back to the community

PHOENIX -- As 2024 nears a close, The UPS Store is looking to give back to the Arizona community with the holiday season approaching.

Microchip to close Arizona facility amid cost concerns