Irvine-based Microsemi Corp. is into phase three of its consolidation plan.
The chipmaker, which already has cut some 1,200 workers in its first two cost-cutting phases, said Monday that it plans to shutter plants in Colorado and Ireland as part of its four-year slimming.
The plant in Broomfield, Colo., accounted for about 12% of Microsemi’s yearly sales.
The 130,000-square-foot plant, which Microsemi owns, has 165 workers.
The 62,500-square-foot plant in Ireland accounted for less than 5% of the chipmaker’s annual revenue. It has 70 employees and also is owned by the company.
Microsemi has closed nine plants since 2001, including a chipmaking facility in Santa Ana.
The Ireland and Colorado closures are expected to result in about $6 million to $10 million in annual cost savings, the company said. It will take a $9 million to $12 million charge to close the plants in the next 12 to 18 months.
The two facilities are slated to be sold.
The company has sought to improve its margins during the past few years as it suffered a slowdown in its business.
The company, which once said it sold only products with a 60% or more profit margin, said it has improved its operating margin from 25% to 27%.
The Colorado plant has given the company some headaches over the years. Microsemi has been in a long-running dispute with a local business owner next to the company’s Broomfield plant. The person claimed chemicals from the plant contaminated his property.
