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Showing posts for September 2015

16 September 2015

Vishay Diodes Facility Back Up and Running

Vishay Intertechnology announced on 8th September 2015 that its manufacturing facility in Tianjin is now fully operational and that all its product lines are back in operation. 

The Tianjin manufacturing facility provides back-end packaging for some of its diodes product lines. Vishay reported the shockwave of the explosion had resulted in some damage to the facility and caused a temporary shutdown.

It may have a negative impact on the revenues of the diodes segment in the third quarter of 2015 but Vishay mentioned that it was too early to quantify. They intend to update their guidance for the third quarter 2015 before its next earnings call.

Tags: vishay diodes tianjin explosion fully operational

02 September 2015

Will the M and As affect you?

A lot has been said on the effect of M&As on the companies involved and other semiconductor manufacturers, but what about the effect on the supply chain as a whole? How will the recent spate of M&As impact buyers, dealers and OEMs?

The flurry of M&A activity which took place towards the beginning of the year was unprecedented. The value alone is something quite remarkable – just the announcements made already this year are worth about 6 times the annual average of M&As over the last 10 years!

There are numerous reasons for the acquisitions which have taken place or are due to, including a weak Euro and Yen leading to a lower projected growth for 2016. IC Insights have reduced their forecast from 7% to 2% YOY and research firm Gartner have reduced growth from 4.1% to 2.5% for the next quarter. Understandably the financial issues are a big reason for the M&As, but another big reason is to fill product gaps.

With the advent of IoT, companies are needing to expand their capabilities, and rather than starting new products from scratch, it’s much easier (if you can afford it!) to buy an existing company that already has the skills, equipment and technology needed.

This is where things can become tricky for buyers. After an acquisition relationships may change – they may not have dealt with the company taking over, or had a better relationship with one company than the other. How buyers and suppliers view the new company will affect a lot of things. Are they still first choice or has the M&A pushed someone else out of favour? This can lead to confusion and even hold ups in the supply chain. When your component supplier has a strong purchasing team who have good relationships with a wide selection of manufacturers and distributors, these M&As shouldn’t cause you too much difficulty – in fact you shouldn’t even notice things have changed.

Here at Cyclops, our purchasing department is highly skilled and trained to a very high standard – as such they will work tirelessly and not let industry changes affect your orders. Give them a go by placing your RFQ today!

Tags: mergers acquisitions m and as semiconductor industry

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