Microchip to Shut Down Arizona Facility Due to Budget Constraints

Microchip Technology Inc. announced plans to close its Tempe computer chip factory in 2025 to cut costs amid an expected slowdown in sales. The CEO, Steve Sanghi, made the decision after reviewing the company’s operations and determining necessary actions. The closure of the silicon wafer fabrication facility in Tempe will impact around 500 workers and is scheduled to take place between July and September 2025, aligning with the company’s fiscal year 2026 second quarter. By shutting down the Tempe factory, Microchip anticipates saving approximately $90 million annually as stated in a filing with the U.S. Securities and Exchange Commission. While the exact number of affected workers was not specified by a company spokesperson, the company had already temporarily closed the Tempe factory for two weeks earlier in the year, along with two other factories in Oregon and Colorado, in an effort to reduce costs. Following the closure, manufacturing activities will be shifted to other facilities as required.