Flooding in Southeast Asia by a super typhoon has caused local semiconductor manufacturers to stop production.

Published: Dec 21, 2021 08:11

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Super Typhoon Ray (Rai) made landfall in the Philippines last Thursday, bringing heavy rain in Southeast Asia. Floods hit the Malaysian peninsula over the weekend, affecting local ports and factory operations.

According to Philippine officials, Typhoon Ray killed 208 people along the way, displaced more than 440000 Filipinos by the typhoon, destroyed power systems in many parts of the Philippines and affected about 1 million people.

The typhoon caused torrential rains over the weekend on the Malaysian peninsula, flooding displaced tens of thousands of people, closed roads and disrupted shipping. Zaini Ujang, secretary-general of Malaysia's Ministry of Environment and Water Resources, said the torrential rains in the two days from December 17 to 18 reached the usual monthly rainfall. It was not until Sunday (19th) that the rain gradually abated and the flood began to recede.

Malaysian authorities said on Saturday that operations at the port of (PORT KLANG), Southeast Asia's second-largest port, had been severely disrupted by flooding. Due to damage to the entrance roads, many staff are unable to go to work and the delivery of goods and berthing of vessels will be delayed in the next few days.

Many factories in Malaysia have also been affected by the floods. BE Semiconductor (BESI), a Dutch supplier of chip packaging equipment, said on Monday that it had cut its fourth-quarter revenue forecast as floods in Malaysia affected its main production facilities there.

BE Semiconductor said torrential rains affected its main production facility in Shalam (Shah Alam), Malaysia, suspending the assembly of products worth about 25 million euros (179 million yuan).

"according to preliminary estimates, the one-time material and labor-related costs required to repair or replicate those affected systems are between 4 million and 6 million euros, which will be included in fourth-quarter earnings," the group said in a statement. "

The cost of repairing the affected construction and production-related equipment is expected to be no more than 2 million euros, BE Semiconductor said. The company now expects fourth-quarter revenue to fall by about 15-20% from the third quarter, compared with a previous forecast of 5-15%.

But BESI said it expected orders to be worth about 1.8-190 million euros in the fourth quarter, up from 157.3 million euros in the fourth quarter of last year.

Semiconductors production production capacity

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