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Components | December 27, 2011

SANYO sites in Ayutthaya to close

Update to operations at ON Semiconductor’s Thailand production facilities
"The severity of the flood damage to ON Semiconductor’s production facilities in Thailand, and the prolonged inability of these sites to operate, has caused major disruptions within our global supply chain - specifically for our SANYO Semiconductor division and some of the former Catalyst Semiconductor products we acquired in 2008", the company states.

Production at ON Semiconductor’s Thailand facilities has been suspended since early October; access to the sites to begin assessing the damage was safely gained in late November.

The severity of the flood damage to the production facilities ON Semiconductor operates in Thailand, and the excessive cost required to recover and reconstruct these facilities, On Semiconductor has decided "that it is not financially viable for us to fully re-start our probe, assembly and test operations in Thailand for an indefinite period, if at all".

The company therefore ceases all production at its SANYO sites in Ayutthaya, Thailand, and plans to maintain limited production at its Bang Pa In site.

The bulk of the Thailand operations will be permanently transferred to other existing ON Semiconductor facilities (Malaysia, Philippines, China) that have available production equipment capacity and excess floor space, and to some external subcontractors as appropriate.

The production transfer will affect approximately 1'600 of the company's manufacturing personnel in Thailand.

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