According to Pengbai News, ON Semiconductor’s application for resumption of work at the Shanghai Global Distribution Center has been supported by the Shanghai Economic and Information Commission, and the company is currently included in the “white list” of the second batch of key enterprises in Shanghai to resume work and production.
It is reported that there are at least 66 semiconductor companies in the first batch of resumption lists in Shanghai, and at least 200 semiconductor companies are included in the second batch of “white lists” for resumption of work.
Earlier this month, ON Semiconductor, a major auto chip maker, suddenly issued a notice saying that its global distribution center in Shanghai will be temporarily closed as the government strengthens the closure measures.
The notification letter mentions that Chinese shipments have begun to be diverted to other ON Semiconductor sub-districts to ease capacity constraints and help reduce the impact — such as distribution centers in Singapore and Manila, Philippines.
The news aroused the attention of the industry, and even a few media interpreted it as "On Semiconductor is going to move out of Shanghai", which aroused discussions among the industry.
The Shanghai Global Distribution Center is a logistics transfer station of ON Semiconductor. All the products packaged in the company's factories in China will be shipped to the global distribution center in Shanghai, and the distribution center is responsible for packaging and shipping the products to customers around the world. The market's close attention to the closure of ON Semiconductor's distribution center also highlights China's important position in the international logistics and distribution center of the electronics industry.
According to public information, ON Semiconductor is a well-known semiconductor manufacturer headquartered in Phoenix, Arizona, USA, focusing on the automotive and industrial end markets, including automotive functional electronics and safety, sustainable energy networks, industrial automation and 5G and Cloud infrastructure, etc., there are about 34,000 employees worldwide.
It is understood that ON Semiconductor has set up 43 design centers, 22 manufacturing plants and 8 solution centers around the world. ON Semiconductor has three factories in China, located in Leshan, Suzhou and Shenzhen in Sichuan. The company’s global revenue in 2021 is US$6.74 billion, of which US$1.846 billion in the fourth quarter of last year. According to market segments, 35% of revenue comes from the automotive business, and by region, 60% of revenue comes from the Asia-Pacific region.