Microchip is to shutter a fab in Arizona and has lowered its forecast for the final quarter of the year as automotive orders decelerate.

“With inventory levels high and having ample capacity in place, we have decided to shut down our Tempe wafer fabrication facility that we refer to as Fab 2,” says CEO, formerly Chairman, Steve Sanghi, who was the CEO for 30 years years before handing over to Ganesh Moorthy in 2021. Last month, Sanghi took over from Moorthy.

he Tempe products will be moved into Microchip’s Oregon and Colorado plants,

The closing of Tempe will be completed in Q3 2025 and will involve the loss of 500 jobs. Microchip says the closure will give it savings of $90 million a year.

The company has been through a rough few quarters as auto orders have reduced and car manufacturers have been running down inventories built up to avoid the possibility of a supply crunch.

Microchip shares have fallen over 20% this year.

By: DocMemory
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