Recently, the news that the American auto chip company ON Semiconductor plans to close the Shanghai distribution center has attracted much attention, and now things have turned around.

On April 25, an ON Semiconductor spokesperson told Jiemian News, "ON Semiconductor has applied to the Shanghai government for resumption of work, and it has been approved. At present, ON Semiconductor is making every effort to implement these measures to resume work as soon as possible and ensure the normal and safe operation of China's global logistics centers. Continued and stable operation.”

According to ON Semiconductor, the Shanghai logistics center is one of the global distribution centers of ON Semiconductor. At present, all products packaged by ON Semiconductor in China are shipped to the global distribution center in Shanghai, and then packaged and sent to the logistics transfer station. customers all over the world. "It bears witness to China's status as an international logistics and distribution center for the electronics industry."

ON Semiconductor is one of the top ten automotive semiconductor suppliers in the world, headquartered in Phoenix, Arizona, USA, formerly known as Motorola Semiconductor Components. According to the company's financial report, the revenue in the fourth quarter of 2021 was US$1.846 billion, of which the automotive solution revenue ranked first, accounting for 35%, followed by the industrial solution, which was 28%. ON Semiconductor has 43 design centers, 22 manufacturing plants and 8 solution engineering centers around the world.

According to ON Semiconductor's official website, it has two major solution engineering centers (SEC) in Beijing and Shanghai and three manufacturing bases in Leshan, Suzhou and Shenzhen in mainland China. According to ON Semiconductor's 2021 annual report, the company has three global distributions. Centers are located in Shanghai, Singapore and the Philippines.

Earlier, several media reported that ON Semiconductor's "China Global Distribution Center" in Shanghai will be temporarily closed due to epidemic prevention and control. In order to reduce the impact on product delivery, the company began to transfer its capacity to Singapore and Manila, Philippines for distribution. center.

Among them, an ON Semiconductor notification letter dated April 18 also showed that because some suppliers of raw materials, equipment and services also encountered difficulties and interrupted services, ON Semiconductor is making corresponding arrangements. In addition, the closure of Shenzhen, Suzhou and Leshan, as well as enhanced lockdown measures in other smaller cities, will continue to affect the company's business in China.

ON Semiconductor stated in the letter that the company had tried to speed up delivery in various ways before, but it was indeed unable to meet customer demand in a timely manner. In any case, the company will prioritize employee safety and minimize the impact of closures on customers as much as possible.

However, the outside world often interprets ON Semiconductor’s closure of the Shanghai distribution center as an industrial transfer. In this regard, Gu Wenjun, chief analyst of core research, an industry analysis agency, said that the outside world has misunderstood the actions of ON Semiconductor. In fact, what ON Semiconductor "transferred" in Shanghai is only the logistics distribution center, not the production center, which is located in the bonded area and is only temporarily closed. After learning about the situation, the Shanghai government took the initiative to contact the company to help resume work. Some employees have already entered the venue and may fully recover within a month.

Due to the recent outbreak of domestic epidemics, the production and operation of integrated circuit companies has attracted much attention from the outside world. Industry sources said that although the overall operation of the industry is gradually returning to normal, some links such as logistics are still in a tight state.

Recently, the Ministry of Industry and Information Technology has also dispatched a working group to Shanghai to focus resources on ensuring the resumption of work and production in key industries such as integrated circuits.