Following a sharp drop in sales, Microchip announced a temporary measure to furlough employees at its Gresham plant for two weeks in March and is considering another shutdown in June.

Microchip recently received $72 million in federal funding to expand its Gresham plant, but the company's sales woes have prompted a temporary shutdown.

Microchip, which employs about 900 people in the Gresham area, emphasized that expansion plans will not be affected by this short-term measure and emphasized the company's commitment not to lay off employees in the face of adversity.

According to Microchip's preliminary results for the third quarter (ending December 31) announced on January 8, local time, its revenue fell 22% in the quarter, more than the company's previous estimate of 15% to 20% decline, and worse than the 17% decline predicted by Wall Street.

Ganesh Moorthy, Microchip's chief executive, said in a statement that the short-term shutdown was a measure of shared sacrifice to maintain staffing during an uncertain time for the business. He noted that industries and businesses are cyclical, and Microchip has maintained stability in a variety of business environments through tenacity and agility.

Microchip manufactures microcontrollers (MCUS) and analog semiconductors, two electronic components that are essential in many industries, including automotive, aerospace, communications, and industrial products.

Some comments believe that Microchip's vacation is undoubtedly a major blow to the MCU industry.

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