Shanghai Facilities Back to ‘Full Capacity,’ Says Chipmaker AOS

Alpha and Omega Semiconductor’s (AOS) consumer segment revenue in fiscal Q4 ended June 30 declined 1.7% year over year and 15.9% from Q3, said Chief Financial Officer Stephen Chang on an earnings call Wednesday. “Nearly all of the revenue decline was attributable to the Shanghai lockdown, as the largest end market applications in this segment, such as home appliances and gaming are sourced fully from our Shanghai factory,” he said. AOS expects its consumer segment to recover by double digits sequentially in fiscal Q1 ending Sept. 30 on strong demand in gaming and “catch-up” demand from the shipments interrupted by the Shanghai lockdown, he said. “We are expecting record gaming volumes, particularly from the number one gaming console manufacturer, where we have leading share,” he said, referencing Sony and the PlayStation 5. Though the Shanghai COVID-19 lockdown eased in late April and the company was able to restart operations, “it took time for our assembly lines to return to full utilization,” and for the logistics support and supply chain “to ramp up to full functional capacity,” said CEO Mike Chang. “Our Shanghai facilities are mostly back to normal and are currently operating at a full capacity.”