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Bangkok, Nov 14, 2011 (ACN) - Although the worst of the flooding has passed in Thailand, the catastrophe has upset semiconductor assembly and test operations in the region. The impact is not significant enough to have a measurable effect on overall semiconductor industry revenue growth; however, the recent flooding may require customers of these specific companies to adjust their supply strategies.
According to IHS iSuppli, semiconductor suppliers whose test and assembly operations have been affected include ON Semiconductor, ROHM Semiconductor, Lapis Semiconductor, Hana Semiconductor, Stars Microelectronics, Vigilant Technology, STATS ChipPac and Toshiba. Other companies operating test and assembly facilities in the nation have not yet suffered any direct impact from the disaster, including Microchip, Maxim Integrated Products, NXP, Spansion and UTAC. However, some of these companies have encountered indirect impacts due to disaster-related disruptions among their suppliers.
ON Semiconductor, whose semiconductor assembly and test facility in Thailand has been impacted by the flooding, is in the process of relocating its production to other sites. ROHM's sole facility in Thailand, meanwhile, has been closed since October 19. The company is attempting to shift production to other locations.
Lapis' operation, located in one of the most flooded areas—Rojana Industrial Park—now is closed, and the company is looking to supply product from alternative locations.
Hana Semiconductor, a subcontractor for semi companies such as Microchip and Texas Instruments (TI), is currently submerged. Until the water recedes, no assessment can be made as to the length of time that the facility will remain inoperative. TI and Microchip are relocating as much production as possible to other qualified locations.
The Ayutthaya facility of Stars Microelectronics has been flooded. A subcontractor for Microchip, Stars is relocating operations to other sites and anticipates that the impact on production of Microchip’s wireless modules will be minimal.
Vigilant Technology, a supplier of mature low pin-count and power semiconductor packages, has shut down its Thailand facility, although it has suffered no flooding at this time.
STATS ChipPac has suspended operations at its Thailand location. The company is relocating assembly and test operations to other facilities and expects minimal impact on its customers.
Toshiba Semiconductor's Thailand operations, located at Bangkadi Industrial Park, have been stopped since October 12.
Outside of the semiconductor makers, at least one supplier of a key component used for semiconductor assembly has been impacted: lead frame maker Sumitomo Thailand. The company has stopped supplying lead frames from its Thailand facility to TI. However, Sumitomo has other operations and is shifting demand to these locations.
Topic: Press release summary
Sectors: Semiconductors, Electronics General
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From the Asia Corporate News Network
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