TEMPE, Ariz. (AZFamily) — An Arizona company that makes computer chips announced this week that it is closing its East Valley production facility, impacting hundreds of employees.
Chandler-based Microchip Technology Incorporated on Monday announced a “manufacturing restructuring plan” after lower-than-expected orders.
The plan includes closing the company’s wafer fabrication facility at its second facility in Tempe, which will affect approximately 500 employees.
“Many of the process technologies that will operate in Fab 2 are also in operation at our plants in Oregon and Colorado, both of which have ample clean room space for expansion,” said Microchip’s interim president and chief executive officer. CEO Steve Sanghi said in a news release.
SEC filings indicate the move will help the company “contain inventory levels.” The facility will close in September next year.
The company, which makes chips for cars and consumer electronics, is expected to save about $90 million from the closure.
It’s unclear whether employees at the Tempe facility will be offered transfers or other positions within the company, which has offices in 10 states and multiple countries around the world.
Microchip Technology Inc. is not the first Valley tech company to announce layoffs this year. In October, tech giant Intel announced it would lay off nearly 400 employees from its microchip manufacturing facility in Chandler.
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