MICROCHIP TECHNOLOGY INC (MCHP): restructuring charge — Microchip to close Tempe Fab 2, affecting ~500 employees; expects $90M annual savings

MICROCHIP TECHNOLOGY INC

Fab 2 (8-inch wafer facility) shutdown planned by September 2025 quarter; products move to Oregon/Colorado fabs.
Expected annual cash savings of ~$90M post-shutdown, starting June 2026 quarter due to high inventory FIFO basis.
Restructuring costs estimated $3M-$8M near-term, with potential additional costs up to $15M.
Approximately 500 employees affected; inventory levels expected to moderate from March 2025 quarter.
Possible accelerated depreciation or impairment charges; not yet determined.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

MICROCHIP TECHNOLOGY INC announced a restructuring with charges of between $3 million and $8 million affecting Tempe, Arizona wafer fabrication facility (Fab 2) (approximately 500 employees).

Type: restructuring
Charge: between $3 million and $8 million
Affected area: Tempe, Arizona wafer fabrication facility (Fab 2)
Headcount: approximately 500 employees

Exact text from the filing

levels beginning in the March 2025 quarter. This action is expected to affect approximately 500 employees. The Company anticipates near-term restructuring costs to be between $3 million and $8 million, and it is possible that the Company could incur other restructuring and shut-down costs in the future of up to an additional $15 million. The estimates of the

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Source: SEC EDGAR

accession 0000827054-24-000225

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