Microchip Technology (MCHP, Financial), a producer of chips for automobiles and consumer devices, announced plans to shut down its Tempe, Arizona plant, affecting approximately 500 employees. The decision comes as the company faces lower-than-expected orders and adjusts its fourth-quarter revenue forecast to the lower end of its initial estimate of $1.03 billion. The plant is slated to close in the third quarter of 2025 due to high inventory levels and sufficient capacity to expand production at other facilities.
The Chandler, Arizona-based company has been struggling with a significant sales decline, anticipating a 40% drop in revenue this year. Steve Sanghi, a veteran of the company and current interim CEO, emphasized his commitment to the role without a defined timeline for succession.
