IQE: Production Continuing At All Sites
"Low people intensity" compared to other industries enables safe operation with reduced numbers of staff on site
IQE has issued a statement about the impact of coronavirus on its business. It says production is continuing at all of its global sites. But given the diversified nature of its operations, there are differing operating conditions, which are detailed below.
IQE says its manufacturing business has a ‘low people intensity' compared to other industries. As such, it is able to operate effectively and safely with reduced numbers of staff on site.
The United States
A number of States have issued ‘stay at home orders' to their residents, but IQE is not affected because we have been granted special exemption to carry on with production at all four of our sites. As a ‘critical infrastructure provider' we are operating under direction from the Department for Homeland Security which deems IQE to have ‘a special responsibility to maintain (our) normal work schedule'. Nevertheless all members of staff are working from home as a default unless they are essential to production.
As in the US all members of UK staff who can work from home are doing so and, in observance of the Government's directions regarding essential trips for work, exercise, food and care, our sites are operating at minimal staffing levels and only where essential for production.
Taiwan and Singapore are currently less impacted by the virus, so operations there are unaffected.
Supply chain and order book
We have not encountered any disruption to supply chains and our approach of dual or multi-sourcing helps to reduce exposure to disruption at any single supplier.
The order demand for IQE's products has been unaffected and production output in March is above average levels for the previous 12 months.
"There remains an increased risk to near-term demand and therefore revenues due to the impact of Coronavirus on the global economy. However, the total impact of these conditions and risks on IQE's markets remains unquantifiable at this point in time," says the company.