Impacts of the Flooding on ON Semiconductor

Published:2011/10/18 22:31:00 Author:Phyllis From:SeekIC

Chipmaker ON Semiconductor Corp said operations at one of its facilities in Thailand have been suspended owing to floods, and it would affect revenues for the fourth quarter and 2012.

The affected SANYO semiconductor division in the Rojana Industrial Park produces about 5 to 10 percent of ON Semiconductor’s total worldwide output, the company said. ON Semiconductor has confirmed that there have been no on-site injuries to ON Semiconductor employees in Thailand as a result of the flood.

The company believes its operations located in the Rojana Industrial Park including buildings and equipment, suffered severe damage as a result of the flood. However, the company has not been able to enter its site and building located at the Rojana Industrial Park, and is uncertain as to when it will be able to gain access, due to the extensive flooding. Operations at this location remain suspended.

The loss revenue can be caused by multiple factors like the amount of finished goods inventory available, extent of the damage to the building and the equipment, the length of time for operations to resume back to full production levels, the ability to shift production to other locations and the level of demand from customers taking product from this location.

The company is actively working to shift production located in the Rojana Industrial Park to other locations worldwide. The company is working to identify options for shifting production to other facilities within and outside of the ON Semiconductor manufacturing network.

ON Semiconductor’s SANYO Semiconductor division currently operates wafer probe and assembly and test operations in the Rojana Industrial Park which is located approximately 70 kilometers north of Bangkok. Initial reports indicate these facilities have sustained damage as a result of the flooding. ON Semiconductor also has operations located in Bang Pa In, Thailand, which have not been impacted by the flooding to date.

About ON Semiconductor

ON Semiconductor is a premier supplier of high performance silicon solutions for energy efficient electronics. The company’s broad portfolio of power and signal management, logic, discrete and custom devices helps customers efficiently solve their design challenges in automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power applications. ON Semiconductor operates a world-class, value-added supply chain centers in key markets throughout North America, Europe, and the Asia Pacific regions.

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