ON Semiconductor Corp. shares are down almost 16% after flooding in Thailand severely damaged operations.
ON Semiconductor Corp. shares are down almost 16% after flooding in Thailand severely damaged operations.
Production at ON Semi’s Thailand facility — at the Rojana Industrial Park in Ayutthaya — produces between 10 and 12 percent of the company’s total output in the second quarter.
ON Semi said the flood will hurt its financial results for at least the next nine to 12 months, costing it $40 million to $60 million in lost revenue each quarter. The company has insurance for the facility, but it expects the damage from the flood will exceed $50 million in potential proceeds it could receive from insurance claim.
ON Semi has about 600 employees at its flagship production facility in Gresham. The company said Thailand provided assembly and test services, rather than production of the kind the company does in Oregon, so it does not anticipate direct impact on operations here.
Read more at OregonLive.com.
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