Power Integrations has highlighted the challenges of the supply chain for power systems in the Covid-19 pandemic.
“Since mid-March, our San Jose headquarters has been subject to a shelter in place order, which will remain in effect until at least the end of May,” said Balu Balakrishnan, president and CEO. “Most other employees around the world also continue to work remotely, though our sales force in China has been back in office for some time now. And our applications engineering centre in the Philippines has partially reopened.”
The response of the supply chain in the Far East has been key. “With respect to the supply chain, our supply of wafers, which comes primarily from Japan and to a lesser extent from the US, has not been affected by the pandemic,” he said. “Our Chinese assembly and test vendors were affected by the extended shutdown following the Lunar New Year holiday, but have been back to essentially full speed since mid-February. One of our other assembly and test subcontracts in Malaysia was closed for two weeks in mid to late March due to a government-mandated shutdown and operated at reduced capacity through most of April, but is now fully supporting our capacity needs.”
The supply chain issues have also highlighted the need for more sources of production.
“The EMS subcontractor that assembled our high-power gate driver board was also closed for two weeks in March, followed by a period of reduced capacity but is expected to resume normal operations shortly. We've also ramped up a second supplier, which should enable us to satisfy high-power demand in Q2.
“While the supply chain disruptions have created short-term challenges, the impact on our customers and our results to date have been mitigated to a large extent by the diversification of our supplier base, multi-sourcing of high volume products, safety stocks of key inputs such as lead frames and maintaining an