Citing high inventory levels and ample capacity, Microchip Technology will shut down its Tempe, Arizona, wafer fab in the third quarter of 2025.
Called Fab 2, the process technologies from the Arizona fab will run in Microchip’s Oregon and Colorado factories, which also have abundant cleanroom space for the expansion, according to interim Microchip CEO Steve Sanghi.
“We expect to be able to shut down Fab 2 in the September 2025 quarter at which time we expect that it will generate annual cash savings of approximately $90 million,” Sanghi said.
The move comes after Sanghi took over as interim CEO last month when Ganesh Moorthy retired as CEO, president and member of the Microchip Board of Directors.
