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Thailand fabs close due to flooding

Posted: 13 Oct 2011 ?? ?Print Version ?Bookmark and Share

Keywords:Thailand floods? manufacturing facilities? chip production?

Companies at Rojana Industrial Park, Ayutthaya, Thailand have suspended their operations due to massive floods that reportedly killed at least 269 people. The industrial park is located just 40 miles north of Bangkok. Among the companies that closed are disk drive component supplier Hutchinson Technology Inc. and chip makers Microsemi Corp. and On Semiconductor Inc.

Microsemi has announced that one of its subcontracted manufacturing facilities at the Rojana Industrial Park was damaged and forced to suspend operations due to the flooding.

"As we assess the impact of our operations in the region, we will continue to focus on the safety of our team and the community," said James J. Peterson, Microsemi's president and CEO, in a statement. "We are working on a recovery plan to identify solutions that ensure our customers' needs are met in an appropriate fashion, and are evaluating a variety of options including shifting production to other facilities," Peterson added.

Initial reports indicate that the facility, which manufacturers a small percentage of Microsemi's parts for commercial and industrial end markets, sustained water damage as a result of the flooding. The damages will impact the company's operations stemming from damage to test equipment, as well as product slated for delivery in Microsemi's first fiscal quarter ending Jan. 1, Microsemi said. The company noted that it would restore operations at the facility as quickly as possible.

On Semi said it suspended operations at a back-end production facility operated by its Sanyo Semiconductor division in the Rojana Industrial Park in Ayutthaya, Thailand. No employees have been injured at the test and assembly facility located in the said industrial park, On Semi said.

"Our sympathy goes out to our employees and the people of Thailand who have been impacted from the recent flooding," said Keith Jackson, On Semi president and CEO, in a statement. Jackson said On Semi would continue to continue to assess the impact of the flood on the company's operations in Rojana Industrial Park and is working to identify options for shifting the production to other facilities.

Hutchinson also reported that flood waters entered its assembly plant also located at Rojana Industrial Park. The industrial park is without power and an evacuation of the park had been ordered, according to Hutchinson. The company said it is increasing its production output at its U.S. assembly operations and using existing inventory to meet customer demand.

Several plants that make auto parts and subsystems have also reportedly been closed due to the flooding.

Thailand and neighboring regions have been hit by massive flooding after weeks of monsoon rains.

- Dylan McGrath
??EE Times





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