Japanese electronics components maker Sanken Electric to shut Thai semiconductor plant
BANGKOK, NNA - As part of a costly restructuring of its semiconductor business, Japanese electronics components maker Sanken Electric Co. will shut down both its semiconductor devices plant in Thailand and its sales arm in Singapore.
The Japanese company will close Allegro MicroSystems (Thailand) Co. – a manufacturing base of Sanken Electric’s U.S. subsidiary Allegro MicroSystems, Inc. – in Saraburi Province, north of Bangkok, after transferring all of the Thai production processes to the Philippines by the end of March 2021, Sanken Electric said in a statement released Feb. 6.
The production base in the Philippines is also owed by the U.S. unit.
Additionally, Sanken Electric will shut its sales subsidiary Sanken Electric Singapore Pte. Ltd. by the end of September 2020, consolidating it into Sanken Electric (Thailand), also a sales arm of the Japanese company, it added.
Sanken Electric will also streamline its semiconductor manufacturing bases in Japan. While it will close one of its domestic plants by March 2022, it will consider outsourcing production of anther plant to China or South Korea, a spokeswoman at Sanken Electric told NNA on Thursday.
A series of planned restructuring costing about 8 billion yen ($72.8 million) has led Sanken Electric to revise its earnings outlook. For the fiscal year ending in March, it now expects a 7 billion yen in net loss, a turnaround from its earlier estimated 1.9 billion yen in profit.
That is on top of projected revenue of 161 billion yen in that fiscal year, down from earlier forecast 164.3 billion yen. The downward revision reflected weaker-than-expected demand from the automotive and industrial sectors.