(Bloomberg) — Microchip Technology Inc., a maker of chips for cars, consumer devices and other products, said it would close a plant in Tempe, Arizona, affecting about 500 employees.
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The company also said that orders have been slower than anticipated and it was revising the December quarter’s outlook to near the low end of its original forecast of about $1.03 billion.
Steve Sanghi, board chairman and interim chief executive officer, said Monday in a statement that the Tempe plant would be shut down in the September 2025 quarter because “inventory levels are high and the company has ample capacity in place and the ability to expand capacity in the other facilities in the future.”
Microchip, based in Chandler, Arizona, has been mired in a deep sales slump, with revenue projected to plunge 40% this year. Sanghi, a company veteran who had previously served as CEO, returned last month to the top post, replacing Ganesh Moorthy.
“I want to clarify for investors that I plan to stay in this role, even though the title is interim, for as long as it is necessary, so there is no definitive timeline for my successor,” Sanghi said in the statement.
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