Sanyo Semiconductor halts Rojana operation
ON Semiconductor Corporation yesterday announced that its Sanyo Semiconductor division's operations in Rojana Industrial Park in Ayutthaya had been suspended as a result of flooding.
“The company is actively working to shift production located in the Rojana Industrial Park to other locations worldwide,” the company said in the press release.
The operations in Rojana Industrial Park are estimated to have produced about 5-10 per cent of ON Semiconductor’s worldwide output as measured by revenue of US$905.8 million (Bt27.92 billion) for the second quarter of this year.
There was no impact on third-quarter results from the flooding. The company expects, however, because of the flood and related damage to operations in Rojana Industrial Park, some loss of revenue in the current quarter and into 2012.
Multiple factors could affect revenue loss, including the amount of finished inventory available, extent of the damage to the building and equipment, the length of time for operations to resume full production levels, the ability to shift production to other locations, and the level of demand from customers taking products from this location.
Sanyo Semiconductor currently operates wafer probe and assembly and test operations in Rojana Industrial Park, about 70 kilometres north of Bangkok. Initial reports indicate these facilities have sustained damage as a result of the flooding.
ON Semiconductor also has operations in Bang Pa-in, Ayutthaya province, which have not been affected by the flooding to date. The company confirmed that there had been no on-site injuries to ON Semiconductor employees in Thailand as a result of the flooding.
“Our sympathy goes out to our employees and the people of Thailand who have been impacted from the recent flooding,” said Keith Jackson, ON Semiconductor president and chief executive officer. “Our first priority is, as always, the personal safety and well-being of those impacted by the flood.
“We continue to assess the impact to our operations in the Rojana Industrial Park and are working to identify options for shifting the production to other facilities. As the company deems appropriate, it will post updates on our website at www.onsemi.com/news and communicate with our various stakeholders as new information becomes available.”
ON Semiconductor expects to outline the financial impact of the flood in further detail during its third-quarter 2011 earnings call in early November.
