An East Valley semiconductor firm has decided to close one of its plants, taking hundreds of jobs away.
Two local economic leaders plan to do what they can to deal with the fallout.
Microchip Technology is closing its plant at 1200 S. 52nd St. in Tempe. A WARN (worker adjustment and retraining notification) notice published by AZ Workforce Connections on March 5 shows the company will let go as many as 330 workers.
Microchip Technology, which will keep its corporate headquarters in west Chandler, has a wafer fab in Gresham, Oregon, which has room for expansion, and one in Colorado Springs, Colorado. The company’s assembly-and-test facilities are in Thailand and the Philippines.
“We are saddened to learn of the jobs lost in our community, and Tempe has been working with those employees on career placement opportunities through our in-house staff and local partners,” said Mike DiDomenico, Tempe’s economic development director.
In Chandler, where Microchip Technology hasn’t had a plant since it closed it 2003 but where it’s still a major employer and a partner with local educators, there is still plenty of optimism surrounding chipmaking and other technology.
“The closure of Microchip’s Fab 2 campus in Tempe and the resulting job losses are unfortunate,” said Micah Miranda, director of economic development for Chandler. “However, with the continued growth of the semiconductor supply chain in Chandler, there are strong opportunities for new employment.”
The company has suffered some real financial setbacks within the past few years as winners and apparent losers have emerged within the semiconductor world.
Nasdaq says Microchip Technology’s shares fell 2.3% following its Q3 2025 earnings release on Feb. 6. The company reported adjusted EPS of $0.20, missing the consensus estimate and plunging 81.5% year-over-year, while revenue of $1 billion declined 42% year-over-year.
In May of last year, The Oregonian reported Microchip Technology stating that it will shutter its factories for a second two-week furlough of 2024 at the end of June after another steep decline in quarterly revenue.
In November, not only did Microchip announce the impending closure of the Tempe fab, it also announced the retirement of CEO and board chair Ganesh Moorthy, bringing back longtime CEO Steve Sanghi.
Nasdaq.com says the chipmaker’s shares have declined 13.4% over the past three months.
Miranda said there are options for some employees displaced by Microchip Technology’s downsizing.
“Displaced workers can explore local job opportunities within the semiconductor industry and other targeted sectors through the Chandler Career Center,” Miranda said. “That’s a job platform dedicated to connecting Chandler companies with local talent.”
DiDomenico said Tempe is “actively working” with Microchip Technology on finding a buyer for the property and production equipment.
“It’s ready-made for a new tenant to begin operations,” DiDomenico sad. “We are confident that a new company will soon fill the gap and bring high-quality jobs, thanks to the growth we are seeing in the technology and manufacturing industries.”
Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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