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Conexant Files Chapter 11: Who’s Holding the Bag?

With Conexant filing for Chapter 11 last week, I'm curious about who is taking the financial hit and how the supply chain will be affected.

EE Times editor Junko Yoshida wrote the tech side of the story and it's been a breathtaking fall.

According to the filing, Conexant owed $2.83 million to Eastman Kodak, and Silterra Malaysia, are owed $1.98 million.

The lesson here is that bankruptcies always have a domino effect (Kodak went Chapter 11 in January 2012), and even without that end game, the shock wave Nokia has sent through the electronics supply chain is well known.

Conexant still had $135 million in revenue in 2012, so whoever is buying those parts is now potentially in a bind. Datasheets.com shows hundreds of Conexant part numbers covering modems, codecs, Ethernet switches, and audio parts in the supply chain mainly held by Arrows' Verical division.

So…

  • How healthy are your suppliers?
  • Do you keep them on a financial health watch?
  • Should we do it for you?

3 comments on “Conexant Files Chapter 11: Who’s Holding the Bag?

  1. elctrnx_lyf
    March 8, 2013

    It is very important to closely monitor health of every supplier that is critical for your product. There should more importance to products if there is no second supplier is available, mainly active integrated circuits.

  2. Brian Fuller
    March 10, 2013

    @elctrnx_lyf do you have a set of tools or a methodology that you recommend for best tracking such things? Something like that would be a gold mine, as the alternative is time consuming and inefficient information hunting.

  3. t.alex
    March 11, 2013

    That's too fast. Just about 1 year ago, I was evaluating some of Conexant CMOS sensors with their engineers.

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