In a statement, Microsemi Corporation, headquartered in Irvine, California, the United States, said the closing down of the facility at Scottsdale is a part of a consolidation process, currently under way, aimed at cutting inventory levels in order to better the overall cost structure.

With the closure of the Scottsdale fab, Microsemi Corporation says it expects to save as much as $20 million-$25 million a year, when the consolidation is completed in about 18 months.

Microsemi's fab at Scottsdale is an older one, which uses the mature-process technology, predominately 2-inch and 3-inch wafers, Rob Adams, the company's vice-president (corporate development), said in the statement.

Microsemi Corporation, Rob Adams added, expects to give out further information on the closure of the fab at Scottsdale, including the number of jobs that would be affected, when the company releases, in November 2009, its quarterly earnings.

The analog mixed-signal semiconductor vendor says that it is expecting one-time charges for restructuring and other reserves ranging from $24 million to $26 million for lease termination, closure costs, as well as severance and related benefits. A sum $3 million may have to be spent as additional cost of consolidation over the period of closure.

Microsemi Corporation intends to transfer the remaining product lines at the Scottsdale fab to other facilities of the company.