Microchip Technology plans to close a Tempe manufacturing plant and transfer production to factories in other states, affecting 500 Arizona workers.

Microchip Technology Inc., a maker of chips for cars, consumer devices and other products, said it would close a plant in Tempe, Arizona, affecting about 500 employees.

Microchip Technology announced plans to shut down its Fab 2 facility in Tempe, Arizona, as part of a broader restructuring effort amid declining revenue and persistent inventory challenges. The closure,

Microchip Technology adjusted its revenue expectations for the third quarter on Monday, predicting figures near the lower end of its $1.03 billion forecast. This revised outlook falls short of analysts’ predictions of $1.