In a move to save $20 million to $25 million per year, Microsemi has decided to shut down its Arizona plant. By the year 2011, Microsemi is also planning to close down its plant in Scottsdale. This is being done in order to lower down the production of chips and cut down the costs for the same.

The Irvine based company is into making chips that are highly reliable and dependable. These chips are designed for those devices which have to work out even in extreme conditions and in case it fails to be executed properly, the cost of damage comes out to be very high. The plant is expected to close in the next 18 months and charges for severance and other costs are expected to come to around $24 million to $26 million, excluding an additional cost of $3 million.

Medical devices, satellites and industrial machinery are a few such devices where these chips are utilized. These chips help in regulating electrical power in computer products, medical devices, telecommunication gear and aerospace products. The work that has already been done in Scottsdale is expected to be shifted across its other plants. Microsemi had thought about closing another plant in Ireland in the year 2005, but afterwards had let it remain open. The shifting work of its plants including Scottsdale would be carried out in this plant only.

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