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Malaysian floods disrupts production at BE Semiconductor
The extended and record rainfall in Malaysia is affecting BE Semiconductor main production facility in Shah Alam, Malaysia. The weather has caused flooding of the assembly floor for die attach systems.
As a result, the final assembly of approximately 60 die attach systems with a value of approximately EUR 25 million was halted temporarily. All of the systems were scheduled for shipment in the fourth quarter of 2021, the company states in an update. The rainfall stopped on Sunday, December 19 and all BE Semiconductor APac employees are safe. BE Semiconductor says that delays caused by the rainfall could cause its revenue for the fourth quarter of 2021 to decline by as much as 15-20% compared with 3Q21. The impact of the flooding will however have minimal effect on the company's planned ramping of hybrid bonding system production scheduled for the first half of 2022. First estimates of the costs associated with materials and the labor necessary to repair or reproduce any systems affected flood are in the range of EUR 4-6 million. The company says that it estimates that the costs to repair the affected building and production related equipment will not exceed EUR 2 million.