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On Semiconductor shuts down Shanghai global distribution center


Monday, April 25, 2022

On Semiconductor (Onsemi) has notified customers in a letter that the company has to shut down its Global Distribution Center in China, while closely managing supply-chain disruptions caused by COVID lockdowns and restrictions in Shanghai and other major Chinese cities, according to industry sources.

Onsemi, which has three other regional distribution centers in Asia, said in the letter the company has initiated transfers to other locations such as Singapore and Manilla to relieve capacity restrictions and mitigate the impact arising from the shutdown of its Shanghai-based operations, the sources said.

COVID lockdowns in Shenzhen, Suzhou and Leshan are also impacting Onsemi's operations locally, the sources indicated. With smaller cities also imposing lockdowns and restrictions, the tightened COVID curbs in China have had a further impact on Onsemi's operations.

Onsemi has already failed to meet all customer needs although it has devoted many efforts, such as rerouting to alternative warehouses and expedited shipping methods, the sources noted.

Onsemi provides analog ICs, logic chips and discrete semiconductor components, and is among the world's major automotive IC IDMs.

By: DocMemory
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