As the coronavirus (COVID-19) outbreak continues its spread around the globe, one region has taken extreme precautionary measures to stem its tide.
On March 9, Italian Prime Minister Giuseppe Conte issued a countrywide quarantine of Italy. This has led many in the semiconductor industry to question whether STMicroelectronics, who have numerous sites in Italy, will continue production.
STMicroelectronics Response to Italian Quarantine
ST issued a statement the same day reassuring its constituents that production will continue unabated. The global semiconductor giant first and foremost expressed concern about families of employees, stating its desire to “maximize the prevention of infection and support our employees and their families.”
The statement goes on, stating that STMicro is in full compliance with quarantine measures laid out by government officials, noting that measures “[d]o not require a closure of any ST site in Italy.”
The Italian quarantine also requests that companies allow employees to work from home. STMicro notes that it has already been doing this since the end of February, way in advance of yesterday’s quarantine.
According to its statement: “ST has already encouraged this option with its Italian-based employees since the end of February.”
STMicro Response Brings Results
STMicro will not need to cease production at its Italian manufacturing sites since it already has precautionary measures in place. With sites in Caserta, Catania, and Milan, any type of closure would have a significant impact on the semiconductor leader.
STMicro’s reassurance that production continues is comforting to many in the industry. As many supply chains are disrupted, new procurement sources are being sought.
Last year alone, STMicro generated revenue of $9.56B, due in large part to its broad product portfolio.
Coronavirus (Covid-19) Updates
Numerous industries far beyond that of components have felt the virus’s impact. Many conferences have been canceled due to extreme precautionary measures, the travel industry has seen a sharp decline, and soon import and export endeavors may feel the impact.
As countries prepare for the economic fallout, the WHO (World Health Organization) continues its search for a vaccine.