In 2011 Thailand Floods disrupted the component supply chains in the electronics industry. Thailand experienced an above-average monsoonal rainy season, causing many electronic manufacturers in the area to halt operations due to partial flood damage to their facilities, most notably in the Ayuthaya and Chao Praya provinces. SiliconExpert has been actively monitoring the impact of the flooding to electronic manufacturers in the region and the resulting degree of supply chain disruptions to be expected.
17 facilities from 9 different electronic manufacturers have reported shut downs due to the 2011 Thailand floods. These manufacturers include Hutchinson Technology, Microsemi, Nidec Corporation, Omron, On Semiconductor, Seagate, TDK, Western Digital and KCE Electronics Public Company Limited. Although these shutdowns represent significant impacts to these manufacturers, the relative impact to the global electronic supply chain from the Thailand floods is significantly lower in comparison to the impact from the 2011 Tōhoku Japanese Earthquake earlier in the year.
2011 Thailand Floods Affect on Electronics Industry
Hard drives and related components:
Thailand is one of the world’s largest producers of Hard Disk Drives (HDD) and due to the recent flooding several manufacturers have temporarily suspended operations. Two of the largest HDD manufacturers, Seagate and Western Digital have suspended operations due to concern for their workers and facilities from further flooding. In the quarter ending July 1, 2011, Western Digital shipped 54 million HDDs from facilities located in Thailand and Malaysia. The facilities in Thailand were responsible for approximately 60% of the production of the company’s overall supply. Therefore Western Digital’s production capacity for HDDs will be impacted unless production can be improved at other non-impacted facilities. Further along the supply chain, TDK a producer of rare-earth magnets, HDD suspensions, recording media, and sensors has also suspended their operations in Thailand. TDK has not yet set a date for restarting operations at these facilities.
Printed circuit boards:
Furthermore, the manufacturing of printed circuit boards in Thailand has also been impacted. PCB manufacturer KCE Electronics Public Company Limited, has released this recent statement, stating their facilities “have not been able to resist the increasing level of floodwater from the Chao Phraya River, although much effort has been put into repairing the damaged dyke.” KCE’s Technology factory has been shut down as of October 13, 2011. Currently the flooding has stabilized but the damage and plans for restarting operations have not yet been assessed.
Latest posts by Milad S (see all)
- New CFSI Template Released: Conflict Minerals Update - May 19, 2016
- Taiwan Earthquake: Impact on Electronics Industry - February 8, 2016
- Fire at Foxconn’s Zhengzhou Plant - January 26, 2016