Components | October 12, 2011
Impact to ON Semiconductor from Thailand Flood
SANYO Semiconductor division’s operations located in the Rojana Industrial Park in Ayutthaya, Thailand, have been suspended as a result of recent flooding in the region.
The company has confirmed that there have been no on-site injuries to ON Semiconductor employees in Thailand as a result of the flood. “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 CEO. “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 and communicate with our various stakeholders as new information becomes available.” 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. Based on currently available information, the operations located in the Rojana Industrial Park are estimated to have produced approximately 5 to 10 percent of ON Semiconductor’s total worldwide output as measured by revenues of $905.8 million for the second quarter of 2011. There was no impact to third quarter 2011 results from the flooding. The company expects, however, due to the flood and related damage of operations in the Rojana Industrial Park, some loss of revenue in the fourth quarter of 2011 and into 2012. Multiple factors could affect revenue loss, including 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.
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