DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Zone 75--Phoenix, Arizona Application For Foreign-
Trade Subzone Status; Microchip Technology Inc. (Semiconductors)
Chandler and Tempe, Arizona
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the City of Phoenix, Arizona, grantee of FTZ 75,
requesting special-purpose subzone status for the semiconductor
manufacturing facilities of Microchip Technology Inc. (Microchip),
located at sites in Chandler and Tempe, Arizona. The application was
submitted pursuant to the Foreign-Trade Zones Act, as amended (19
U.S.C. 81a-81u), and the regulations of the Board (15 CFR part 400). It
was formally filed on October 30, 1997.
The Microchip facilities are located at two sites in the Phoenix
area (Maricopa County): Site 1--(242,000 sq. ft. plus 475,000 sq. ft.
planned on 80 acres) 2355 West Chandler Boulevard, Chandler, and Site
2--(200,000 sq. ft. on 6 acres) 1200 South 52nd Street, Tempe. The
facilities (1,100 employees) are used for the manufacture of a range of
semiconductor devices and related products, including field
programmable microcontrollers, application-specific processors, related
memory products, and application development tools. Foreign-sourced
materials (some 10% of total) include halides, adhesives, resins,
chemical preparations for photographic uses, molybdenum, transformers,
convertors and inductors, insulated wire, instruments for measuring or
checking electrical quantities, plastic sheets, plastic and paper
packaging materials. Other materials that may also be purchased from
abroad include glues and adhesives, transformers, resistors, diodes,
transistors, integrated circuits, printed circuits, switches,
fasteners, recorded media, and other electrical and automatic data
processing equipment and components.
Zone procedures would exempt Microchip from Customs duty payments
on foreign components used in export production (some 65% of
shipments). On its domestic sales, Microchip would be able to choose
the lower duty rate that applies to the finished products (duty-free--
3%). The duty rates that apply on foreign-sourced items range from
duty-free to 12.5 percent (with most in the 2.1%-7.3% range). FTZ
procedures would also allow the deferral of duty payments on foreign
capital equipment and parts until fully assembled and ready for
production. The application indicates that the savings from zone
procedures would help improve the plant's international
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
Public comment on the application is invited from interested
partiesSubmissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is January 6, 1998. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period to January 21, 1998.
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, N.W.,
Washington, D.C. 20230.
U.S. Department of Commerce, Export Assistance Center, Phoenix Plaza,
2901 North Central Avenue, Suite 970, Phoenix, Arizona.
Dated: October 31, 1997.
John J. DaPonte, Jr.,
[FR Doc. 97-29496 Filed 11-6-97; 8:45 am]
BILLING CODE 3510-DS-P