Microchip plans to close Arizona factory due to high inventory and slow order growth

Chipmaker Microchip announced that it will close a plant in Tempe, Arizona, affecting about 500 employees. The decision was made when inventory levels were high and the company had ample production capacity. At the same time, due to slower-than-expected order growth, the company revised its December quarter outlook to near the lower end of its initial forecast, or about $1.03 billion.