Spel Semiconductor Ltd has suspended manufacturing operations at its Chennai facility due to working capital and funding constraints. The company stated that the suspension will impact revenue and profitability. Its board is actively pursuing strategic avenues for funding to stabilize operations and ensure long-term sustainability.
Spel Semiconductor Ltd, a key player in India’s semiconductor packaging industry, has announced the suspension of manufacturing activities at its Chennai factory. The decision was driven by liquidity challenges and limited working capital, which have constrained the company’s ability to sustain production. Management has assured stakeholders that the board is exploring strategic funding options to revive operations and mitigate financial stress.
Key highlights from the announcement include
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Manufacturing operations at the Chennai facility have been suspended.
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Suspension attributed to working capital shortages and fund constraints.
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Company expects the move to impact both revenue and profitability in the near term.
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Board is actively pursuing strategic avenues for funding to restore operations.
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Management remains committed to long-term sustainability despite current challenges.
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Industry analysts note that funding support will be critical for the company’s revival.
The suspension underscores the financial pressures faced by semiconductor firms in India amid rising demand but high capital requirements. Spel Semiconductor’s proactive search for funding reflects its intent to stabilize operations and maintain relevance in the fast-growing semiconductor ecosystem.
Sources: Reuters, Economic Times, Business Standard