Microchip Technology Plans Sale of Tempe Fab 2

Microchip Technology Inc. has announced its decision to engage Macquarie Group to oversee the sale of its wafer fabrication facility, Fab 2, in Tempe, Arizona. This move is part of Microchip's broader restructuring plan aimed at improving operational efficiency and profitability by transferring production to its facilities in Oregon and Colorado. The closure of Fab 2, expected to occur in May, will result in approximately 330 layoffs and is projected to save the company about $90 million annually. Macquarie's expertise in asset disposition is expected to facilitate the sale process, as the facility includes operational semiconductor equipment and has attracted interest from multiple parties. Microchip has faced challenges due to falling demand, with recent financial reports showing a significant decline in sales. This sale reflects a broader industry trend of companies optimizing manufacturing operations to remain competitive.