Ayala-led Integrated Micro-Electronics Inc. (IMI) said it was forced to shut its Shenzhen facilities in southeastern part of China due to the recent surge in Covid-19 cases.
The Chinese government implemented a lockdown in the area starting Monday through March 20.
“IMI’s Shenzhen facilities, which contribute approximately 10 percent of IMI’s total revenues, will comply with all state directives,” the company said.
“Local management teams are coordinating with government agencies to safeguard the health and welfare of all its IMI employees. Close coordination with affected customers and government units concerned is ongoing to help mitigate its negative impact on the business.”
IMI posted a net loss of $12.45 million in January to September 2021, lower than the previous year’s $13.49 million.
The company said it had revenues of $972.97 million in the third quarter of 2021, up by 23 percent from the previous $788.61 million.
Customer orders and the project pipeline remain robust as demand for electronic products outpaces global supply. However, additional growth and business margins are still suppressed by challenges in the supply chain as new rounds of government mandated restrictions slow down the recovery of major suppliers in the component industry, the company said.
Global freight expenses have also risen dramatically with widespread port congestions and shipping container shortages hindering international operations, it added.