TEMPE, AZ (AZFamily) — An Arizona company that manufactures computer chips said this week that it’s shutting down a production facility in the East Valley, affecting hundreds of employees.
On Monday, Chandler-based Microchip Technology Incorporated announced “manufacturing restructuring plans” due to slower-than-anticipated orders.
The plan included closing its wafer fabrication facility in Tempe, Fab 2, which will impact approximately 500 employees.
“Many of the process technologies that run in Fab 2 also run in our Oregon and Colorado factories, which both have ample clean room space for expansion,” Microchip interim president and CEO Steve Sanghi said in a news release.
A filing with the SEC indicates the move will help the company “moderate inventory levels.” The facility will shut down next September.
The company, which produces chips for cars and consumer devices, expects to save about $90 million with the closure.
It’s unclear if Tempe facility employees will be offered transfers or other positions within the company, which has offices in 10 states and multiple countries worldwide.
Microchip Technology Inc. isn’t the first Valley tech firm to announce layoffs this year. In October, tech giant Intel announced it would be laying off nearly 400 employees from its microchip fabrication facility in Chandler.
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