Motorola to Close 2 Chip Plants in Arizona

Motorola Inc. said it will close two semiconductor plants in Mesa, Ariz., over the next 2 1/2 years as it strives to turn around its money-losing chip unit.

The move will affect about 1,200 employees, most of whom will be transferred to other Phoenix-area plants, the company said.

Motorola, based in Schaumburg, Ill., has closed five chip plants in four years and was phasing out two more facilities.

The new closures involve a plant that makes bipolar chips used by the automotive industry and one that makes radio-frequency chips.

The company said the latest move is not entirely because of the economic slowdown that has hit the chip sector hard. “This strategy certainly has been propelled by the downturn, but it’s really more of a long-term strategy to improve our asset management,” the spokesman said.

Motorola shares fell $1.01 to $17.40 on the NYSE.