According to supply chain, Infineon issued a notification to its customers on June 15 about the impact of the COVID-19 pandemic on its recent production and delivery.

Infineon stated that all its manufacturing sites, despite Melaka, are currently fully operational, complying to the local safety and health regulations by the respective countries. The infineon management team has implemented significant precautions at all Infineon manufacturing and office locations to help contain the spread of the coronavirus.

In Malaysia, the Government has extended a strict lockdown for the whole country from 15 June until 28 June. Infineon's sites in Melaka (Assembly and test site) and Kulim (Wafer fab and test) were granted the status of essential industry and thus were generally allowed to operate.

Infineon stated in the notification that as reaction to a continuous number of infections, their Backend site in Melaka was ordered by the Ministry of Health to shut-down on 2 June. As of 8 June, they have received the allowance to access and operate all of 8 production blocks.

Currently, Infineon estimates the cumulated loss of production at 2-3 weeks due to safety measures such as disinfection of all production areas, quarantine of employees and full PCR testing, which result in a very limited availability of people at the site during the next days.

In Kulim, some employees were infected and many people were quarantined, resulting in reduced production capacity. Infineon is making all efforts to minimize the resulting output delay.

Infineon also expects a relevant impact from some of their production partners in Malaysia as a result of COVID-19 restrictions. Infineon focuses on minimizing the impact on their customers. Where required and in alignment with the Divisions they will also trigger a BCCN in order to enable the immediate use of second source production partners.

Regarding global logistics, Infineon stated that despite severe global air transportation capacity restrictions and continued general transportation restrictions related to COVID-19, deliveries are still in progress, although some of them may be delayed. However, Infineon emphasized that it has implemented contingency plans, such as using different transportation routes, to minimize the impact.