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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 78-97]

 
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 
competitiveness.
    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.,
Executive Secretary.
[FR Doc. 97-29496 Filed 11-6-97; 8:45 am]
BILLING CODE 3510-DS-P