With limited chip supply, Analog Devices delays closure of California factory By Reuters

LYNXNPEB7G0X5_L.jpg

© Reuters.

By Stephen Nellis and Hyunjoo Jin (Reuters) – Analog Devices Inc (NASDAQ 🙂 is delaying the closure of a chip factory in California as booming sales and supplies remain tight, the CEO of the company after the company reported better than expected quarter results. ADI previously said it would close its semiconductor factory in Milpitas, California, which makes chips for the auto industry, sometime before the company’s fiscal year ends in October. In December, ADI told California regulators that the plant’s 255 employees would be laid off on February 19. But ADI CEO Vincent Roche said Wednesday that the plant will stay open longer due to supply shortages that could persist until October. “We will probably keep that facility open a little longer so we can fill any gaps in supply,” Roche said. “We are pretty well on track to move forward with the closure by the end of the (fiscal) year.” Automakers from General Motors Co (NYSE 🙂 to Honda Motor Co Ltd are battling chip shortages, leading to factories shutdowns, as consumer demand has unexpectedly quickly rebounded from the car crisis. coronavirus. Roche said the company still believes it will be more profitable to consolidate the California factory with its Washington facility by October, but that it could review that decision in the future. “If demand goes up another notch, then it’s a different story,” Roche said. He added: “We will be smart and adaptable as needed.” Analog Devices, or ADI, reported Wednesday that revenue in the fiscal first quarter ending January 30 increased 20% to $ 1.56 billion and adjusted earnings per share increased to $ 1.44. These compare with Wall Street expectations of $ 1.51 billion and $ 1.32 per share, according to IBES data from Refinitiv. The company forecast revenue and taxable profit for the second quarter with midpoints of $ 1.6 billion and $ 1.44 per share, beating estimates, according to Refinitiv data.

Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so the prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data. Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.