Struggling Microchip Technology Moves to Sell Its Arizona Manufacturing Facility | Global News Avenue

Microchip technology (MCHP) Stocks fell Thursday, and the struggling semiconductor company said it hired Macquarie Group to help sell its Fab 2 fab manufacturing plant in Arizona.

The company explained that Fab 2 will “sell and sell under the guidance of semiconductor and technical teams in Macquarie’s merchandise and global market operations.” It does not indicate how much it expects to receive from the sale.

Microchip Technology announced in December that it plans to uninstall the Tempe plant to restructure its manufacturing operations. At the time, Steve Sanghi, the new installation’s interim CEO, explained that the decision was made “high inventory levels and with adequate capacity.” The site produces installed and operated chip equipment, and its product manufacturing and technology are transferred to Fabs 4 and 5 in Oregon and Colorado, respectively.

Michael Finley, senior vice president of Fab Operations, called the closure and sales “the latest development in our ongoing restructuring, which shows our efforts to resize manufacturing.” The company said in December that it expected that the closure time will occur in the September quarter and will save about $90 million in cash annually.

Microchip technology has been hurt by the decline in demand. Last month, it reported that fiscal 2025 net sales fell 42% year-on-year in the third quarter, Sanji noted that performance reflects “the demand for the decisive steps we have taken to re-adjust the business.”

Microchip Technology stock fell more than 4% on Thursday morning, losing 40% of its value in the past year.