Thai Operations of California-Based Electronics Company May Shut Down.

Jul. 8--About 7,000 employees of the Thai factory of Read-Rite, a loss-ridden US electronics company, might lose their jobs if the company is forced to shut down operations by mid-month due to shortages of raw material and money.

Read-Rite (Thailand) employees rallied yesterday at the company's site at the Bang Pa-in Industrial Estate in Ayutthaya demanding two to three months' unpaid salary. The company's US parent filed for bankruptcy protection in mid-June.

According to an industry source, the existing stock of imported wafers, used by the company to make head-gimbal assemblies (HGA), is nearly gone after the parent company ceased operations. With orders from abroad declining, the unit has faced trouble paying its staff.

"The manufacturing manager at Read-Rite (Thailand) has confirmed to me that its production would be closed by mid-July. Somebody there called me asking about the possibility of offloading part of their workforce," said an executive of an electronics firm located nearby.

Most Read-Rite output is exported and some is sold to local hard disk drive makers including Western Digital.

Read-Rite staff earn more than the market average, making other firms hesitant to take them on, the executive said.

A senior Read-Rite staff member, who asked not to be named, said the company had been aware of possible financial trouble since late last year. But staff were told not to worry since the company had already set aside a financial reserve.