Zarlink U.K. analog fab closed by flooding

By Colleen Taylor, Contributing Editor -- Electronic News, 7/23/2007

Record rainfalls in the United Kingdom have forced Canada-based communications chip developer Zarlink Semiconductor Inc. to shut down operations at its analog foundry in Swindon, England.

According to Zarlink, the plant was flooded last week as a result of record rainfall in June and July and the breach of the nearby River Ray (see image below). On July 20, all 180 employees were evacuated and a complete services shutdown was required. A Zarlink spokesperson told Electronic News that the fab itself was not damaged; the flooding had occurred only at one of the administration buildings. Power was cut off to the entire site, however, which prompted the shut-down.

The company said that environmental checks were made, and all site discharges were monitored with no spills, leakages or discharges recorded. Zarlink said it is currently working with local authorities to restore power, and foundry operations are expected to fully resume over the next several weeks.

Fortunately, Zarlink said that it does not expect the temporary closure to seriously affect its bottom line. In a statement released today, the company said that because it carries insurance for the loss of physical plant and business interruption and foundry revenues are less than 10 percent of company revenues, it expects "minimal impact" to its fiscal Q2 earnings report.


Photo supplied by Zarlink