just! Onsemi Corporation of the United States announced that due to the impact of the Shanghai epidemic, ON Semiconductor will close its China global distribution center in Shanghai. After the closure, Shanghai deliveries will go to Singapore and the Philippines.

Onsemi in China

Previously, the Shanghai distribution center was responsible for the distribution of goods from the three major factories in Shenzhen, Suzhou and Leshan.

According to information on ON Semiconductor‘s official website, ON Semiconductor Shanghai Solution Engineering Center (SEC) was established in 2010, focusing on the development of power management solutions, focusing on automotive applications, and providing a development platform.

Subsequently, the ON Semiconductor Shenzhen manufacturing plant was built in 2011, mainly for packaging and testing, covering an area of ​​nearly 2,000 square meters.

Later, in 2016, ON Semiconductor acquired a semiconductor company named Fairchild in Suzhou, which is also mainly used for assembly and testing, which is much smaller than the Shenzhen factory.

In addition, as early as 2006, ON Semiconductor has built a solution engineering center in Taipei, mainly for the computer and power supply or conversion market.

Arrangements under lockdown

On April 18, ON Semiconductor issued a notification letter stating that as the government strengthened its closure measures, especially in Shanghai, its global distribution centers in China were forced to close, thereby affecting business.

Mike Balow, executive vice president of ON Semiconductor, said in the letter that our company prioritizes the safety of our employees under all circumstances and is doing everything in our power to mitigate the impact of the lockdown on our customers.

ON Semiconductor is a leading global semiconductor manufacturer with more than 80,000 different devices and a global supply chain

Mike Balow believes that in addition to the closure and control of Shenzhen, Suzhou and Leshan, other cities‘ control or restrictions on entering the city have also affected factory production.

Therefore, he said, we are also making close arrangements for the disruption of Chinese suppliers of materials, equipment and services.

The following is the full text of the letter:

April 18, 2022

Dear valued customer:

ON Semiconductor will continue to monitor the global COVID-19 situation and pay close attention to the latest developments in the Asia-Pacific region. As the government intensified the lockdown, especially in Shanghai, our China Global Distribution Center was forced to close, thus impacting business.

At this time, there has been no change in our situation and we have not received any progress notifications regarding the possible lifting of lockdown restrictions. Our company prioritizes the safety of our employees in all circumstances and is doing everything we can to mitigate the impact of lockdowns on our customers.

In addition to the closures in Shenzhen, Suzhou and Leshan, which have affected our operations there, we also believe that smaller cities have begun to impose closures or tighten restrictions on entry, especially to external manufacturing sites. Influence. We also make close arrangements for the disruption of Chinese suppliers of materials, equipment and services.

The team continues to focus on delivering critical equipment to customers and doing their best to get the product out in the fastest way possible. As part of this effort, we have begun moving to other company locations, such as ON Semiconductor‘s Singapore and Manila distribution centers, to ease capacity constraints and help reduce the impact.

Despite our many efforts to respond to this force majeure event, including rescheduling other backup plants and adopting more expedited shipping methods such as the Next Flight Out initiative, or NFO for short, we are still unable to deliver enough material to satisfy all customers demand.

We are working to strengthen a plan to deal with further extended lockdowns. The situation is changing every day and we will monitor and adjust our approach as necessary.

We thank you for your continued patience and partnership as we navigate this difficult time.