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Microsemi Closing Arizona Plant

Orange County Business Journal Staff

Microsemi Corp. is closing an Arizona plant in a move the Irvine chipmaker said expects to save it $20 million to $25 million a year.

The company plans to close its Scottsdale plant by 2011 as part a move to cut costs and lower the amount of chips its produces.

The plant has between 200 and 300 workers, according to a report in the Arizona Republic, a daily newspaper.

Some workers may be able to transfer to other locations in California and Massachusetts, the report showed.

Microsemi makes what are known as high-reliability chips that go into devices that need to perform under extreme conditions where failures can be costly.

The chips are used in satellites, medical devices and industrial machinery.

The company expects a charge of $24 million to $26 million in the current quarter for severance and other costs related to the closure.

Another $3 million in charges could come before the plant closes in the next 18 months.

The plant produces chips that regulate electrical power in computer products, telecommunication gear, medical devices and military and aerospace products.

In 2005, Microsemi looked at closing an Ireland plant but opted to keep it open and shift work from other facilities there, including from Scottsdale.


  Feb. 8-14, 2010
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