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Thailand Flood Shuts Down Many Chip Assembly and Test Operations

Numerous electronics companies have been impacted by the severe flooding that has occurred in Thailand. Many chipmakers have semiconductor assembly and test operations in the country, and some of those operations have been shut down, impacted by the heavy rain and severe flooding.

Among the chip suppliers whose test and assembly operations have been impacted are ON Semiconductor, ROHM Semiconductor, Lapis Semiconductor, Hana Semiconductor, Stars Microelectronics, Vigilant Technology, STATS ChipPac, and Toshiba, according to researcher IHS iSuppli.

ON Semiconductor’s Thailand semiconductor assembly and test facilities have been shut down by the flooding. Keith Jackson, ON Semiconductor president and CEO, said operations at its facilities in Ayutthaya and Bang Pa remain suspended because of flooding.

“We have not been able to enter our facilities. The company continues to work on options to meet our customers’ production needs by shifting production to other facilities both within and outside our global ON Semiconductor manufacturing network,” said Jackson.

Jackson added that the flooding in Thailand and resulting damage to ON’s facilities will negatively impact revenues by approximately $60 million in the fourth quarter of 2011. “Our SANYO Semiconductor division will experience the vast majority of this revenue reduction, specifically resulting from the Thailand flood.”

ROHM’s facility in Thailand has been closed since Oct. 19. The facility conducts assembly and test for integrated circuits, discrete transistors, diodes, resistors, and tantalum capacitors. ROHM is attempting to shift production to other locations.

Lapis’s operation in the Rojana Industrial Park is closed. Lapis is looking to supply product from alternative locations.

Hana Semiconductor’s Thailand facility is flooded. Hana is a subcontractor for Microchip, Texas Instruments, and other companies.

The Ayutthaya facility of Stars Microelectronics is also flooded. Stars, a subcontractor for Microchip, is relocating production to other sites. It said that the impact on production of Microchip’s wireless modules will be minimal, according to IHS iSuppli.

Vigilant Technology, which produces low-pin count power semiconductor packages, 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.

Operations in Thailand have been stopped since Oct. 12 at Toshiba Semiconductor for assembly of LEDs and discrete chips. The operation is located at Bangkadi Industrial Park.

Sumitomo Thailand has stopped producing lead frames at its Thailand facility. It is shifting production to other locations. Many of the lead frames are shipped to Texas Instruments, but TI said impact of the shutdown of the Sumitomo facility will be minimal and there will be no shortages in the fourth quarter.

The back end assembly and testing sites for Littelfuse’s TVS Diode Array product family in Ayutthaya have been shut down because of the floods. The company has not yet determined a date when production will resume.

Littlefuse, based in Chicago, said it expects to qualify alternative back and assembly testing sites for its TVS Diode Array family and mass production should resume sometime in January 2012.

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