CHANDLER, Ariz.--Microchip Technology Inc. today (Feb. 28) announced it was cutting 400 jobs, delaying a new wafer fab in Puyallup, Wash., and closing its Hong Kong test facility as part of cost reductions in the midst of a severe industry downturn.
The supplier of microcontrollers said it was reducing wafer-fab capacity at its two plants in Arizona to match demand. The company's planned start date of an 8-inch fab in Puyallup has been further delayed until December 2002, said Microchip officials today.
In order to cut final testing of ICs, Microchip is closing the Hong Kong facility it gained with its recent acquisition of TelCom Semiconductor Inc. (see Oct. 27 story). The TelCom acquisition was completed in January. Testing operations will be transferred to the company's facility in Thailand during the second quarter of 2001.
"When we entered the December 2000 quarter, we were anticipating 9% growth in the December 2000 quarter and approximately 6% growth in the March 2001 quarter, and we had in place the operating capacity to meet these growth targets," said Steve Sanghi, president and CEO of Microchip. "Based on the continued uncertainty of the March 2001 quarter, combined with the lack of visibility for fiscal 2002, we believe it is prudent to reduce our operating capacity at this time."