Integrated Micro-Electronics, Inc. (IMI), a subsidiary of the Philippines-based Ayala Corporation, has announced the closure of its Chengdu, China facility. This decision is part of the company's broader strategy to streamline operations and reduce costs by consolidating its manufacturing footprint into more strategically located facilities.

Production at the Chengdu plant wrapped up in December 2024, with all customer commitments met and remaining projects successfully transferred to other IMI sites. By the end of January 2025, the company expects to complete the transfer of assets and equipment. The plant is set to be formally handed back to the landlord by February 2025.

The closure reflects IMI's ongoing efforts to focus on markets with higher strategic value, as it adapts to shifting global economic conditions. The company has faced challenges, including high interest rates, excessive inventory levels, and suppressed consumer spending, all of which have contributed to a need for operational adjustments. In recent months, IMI has also scaled back its presence in Japan, Malaysia, and Singapore, shutting down offices and downsizing operations in those regions.

As part of the closure process in Chengdu, IMI will also adhere to local government regulations, starting a six-month winding-up period in February 2025. This move is expected to enhance IMI's operational efficiency and enable the company to better serve its global customer base from its other strategically located facilities.

IMI has been grappling with financial losses since 2019, and this latest restructuring initiative is aimed at better aligning the company's operations with current market demands. The Chengdu factory, which was the smallest of IMI's four Chinese plants, had limited product offerings and services, making its closure a key step in the company's strategy to optimize its resources and strengthen its position in more promising regions.

IMI remains committed to its long-term vision, focusing on high-quality electronics manufacturing for industries such as electric vehicles and healthcare, while continuing to navigate the challenges of a changing global marketplace.