Microchip’s Thailand Factories Operating Normally; No Imminent Danger Due to Location

Microchip Technology Inc. (NASDAQ: MCHP), a leading provider of microcontroller, analog and Flash-IP solutions, today announced that both of its factories in Thailand are continuing to operate normally, and are in no imminent danger of flooding because of where they are located (approximately 50 miles east of Bangkok). There is, however, extensive flooding in other parts of Thailand, including sections of the city of Bangkok, and our heartfelt sympathy and concern goes out to the people of Thailand who have been impacted by these floods.

"Our highest priority remains the safety of our 3000+ Thailand employees and their families,” said Ganesh Moorthy, Microchip’s COO. "While a majority of our employees live outside the areas expected to flood, we already have more than 200 employees who are affected. That number will unfortunately go up in the coming days, and we are doing everything we can to help our employees who are affected or at risk of being affected.”

The primary international airport in Bangkok remains open, and Microchip’s shipping and receiving is operating normally. While there have been reports of a Bangkok airport that is flooded, that is the old airport in the north of the city, which Microchip doesn’t use. Instead, Microchip uses Thailand’s primary international airport, known as Suvarnabhumi Airport, which is located east of Bangkok.

Subcontractor Supply Chain Update

While Microchip’s subcontractor supply chain in Thailand has been impacted, the Company has already implemented alternative solutions to nearly all of these suppliers. The following is an update on Microchip’s Thailand subcontractors:

• HANA Semiconductor, located in Ayutthaya (north of Bangkok), is under water and expected to be out of commission for several months. Microchip runs very little volume at Hana, and is moving the products it ran there to other subcontractors.
• Stars Microelectronics, also located in Ayutthaya, is also under water and out of commission. Microchip builds some of its wireless modules at Stars, and has already shifted production to an alternative subcontractor.
• Vigilant Technology, located near an area of Bangkok that is at risk of flooding, has shut down as a precautionary measure until the risk has subsided. Microchip has alternative sources for the packages built at Vigilant, and does not expect any impact from this shutdown.
• UTAC has three factories in the Bangkok area, and all three are continuing to operate normally.

"The contingency plans that Microchip developed over the years have been put to good use, and the fact that we are continuing to operate as normally as one can under the circumstances is no accident,” Moorthy continued. "Rather, it is a testament to the preparation, thoughtfulness and hard work of our team in Thailand.”

About Microchip Technology

Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at http://www.microchip.com/get/VCBV.

Note: The Microchip name and logo are registered trademarks of Microchip Technology Inc. in the USA and other countries. All other trademarks mentioned herein are the property of their respective companies.

Tags / Keywords: Thailand Flood, Manufacturing Operations, Microchip Technology

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