Semtech plant impacted by fire, MEMC polysilicon operations impacted by storm

A fire at a Semtech power discrete fab could cost the company more than $3 million. Separately, MEMC adjusts operations operation at a Texas fab on Tropical Storm Edouard and expects a two day effect on the facility's polysilicon production.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 8/6/2008

A fire and tropical story separately impacted two semiconductor industry players this week.

Semtech Corp, a supplier of analog and mixed-signal semiconductors, Tuesday announced that a fire occurred on Thursday, July 31, at its Reynosa, Mexico, fab (pictured, left) and said that it could cost the company more than $3 million.

Semtech* reported no injuries from the fire, only noting some loss of equipment and partial damage to the facility, which services the company’s power discrete business unit. 

The company is implementing a recovery plan and said it expects to resume all operations within eight to nine weeks. Semtech further expects that the fire damage will have no impact to revenues for its fiscal Q2 2009, which ended last month. However, Semtech estimated that the fire will have less than a $1 million dollar impact on its fiscal Q3 revenues and a further $2 million to $3 million impact on fiscal Q4 revenues.   

Withholding details on the fire’s cause, the Camarillo, Calif-based company said that further updates on the fire’s impact to business will be disclosed during its earnings call later this month.

Meanwhile, MEMC Electronic Materials Inc Tuesday provided an update related to Tropical Storm Edouard.

The St Peters, Mo-based company reported that it took safety precautions in preparation for heavy weather associated with the tropical storm at its facility in Pasadena, Texas, through which Edouard passed Tuesday.

As part of the precautions, the company said it moderated operations in various areas of the Pasadena facility. MEMC produces ultra-pure granular polysilicon for the manufacturing of silicon wafers at the site (pictured, right). MEMC said it expects the operation changes to have approximately a two day effect on the facility’s polysilicon production.

Not estimating possible damages or production delay costs in its statement Tuesday, the wafer manufacture said that should the storm’s impact affect its financial targets, it will issue a separate statement at a later date.

*Editor's note: Semtech was originally misspelled in this article. Corrections were made on Aug. 7.