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According to a report from Daily Tidings, Microchip Technology has announced plans to lay off workers at its Oregon and Colorado facilities on the 3rd, citing weak financial performance caused by declining sales.
As noted by the report, Microchip Technology’s Gresham facility, Fab 4, employs approximately 900 workers. On Thursday, employees at its Gresham plant were informed of the impending layoffs by Vice President Dan Malinaric. He states that the job cuts would be less severe than the initially expected one-third of the workforce, according to the report.
As highlighted by Daily Tidings, semiconductors remain a cornerstone of Oregon’s industry, but the sector has faced ongoing challenges locally. This downturn has resulted in multiple rounds of layoffs, including the 1,300 job cuts at Intel’s Hillsboro campus in October 2024.
Microchip produces chips for industrial and aerospace systems, consumer electronics, and automobiles, as the report from Daily Tidings indicates. The report also mentions that Microchip has experienced a sharp decline in customer demand and currently possesses roughly twice the necessary inventory levels.
Microchip has released its financial results for the third quarter of fiscal year 2025. As per its press release, the company reports net sales of USD 1.026 billion, reflecting an 11.8% decline from the previous quarter and a 41.9% drop compared to the same quarter last year.
Microchip Halts CHIPS Act Application Due to Surplus Inventory
In January 2024, Reuters reported that the U.S. Commerce Department planned to grant Microchip Technology USD 162 million in CHIPS Act funding to enhance domestic semiconductor and microcontroller unit (MCU) production.
However, as Bloomberg highlighted in a report from late 2024, Microchip decided to pause its application for U.S. semiconductor subsidies due to declining sales, becoming the first known company to withdraw from the program.
Additionally, as noted in another Reuters report, in December 2024, Microchip announced the closure of its wafer manufacturing plant in Arizona.
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(Photo credit: Microchip)
