On April 20, ON Semiconductor recently issued a notice saying: Affected by the Shanghai epidemic, China's global distribution center was forced to close. It will continue to affect ON Semiconductor's production and shipments, and may not be able to meet the needs of all customers. ON Semiconductor noted that as the government tightened its lockdown measures, especially in Shanghai, ON Semiconductor's China Global Distribution Center was forced to close, affecting business. There has been no change in the current situation, and ON Semiconductor has not received any notice of any progress on the possible lifting of the lockdown.

The following is a partial translation of ON Semiconductor's notification letter:

onsemi continuously monitors the global COVID-19 situation, closely monitoring the latest developments in the Asia Pacific region. Our China Global Distribution Center was forced to close as the government tightened its lockdown measures, especially in Shanghai, impacting business.

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

In addition to the closures in Shenzhen, Suzhou and Leshan affecting our local business, we also pointed out that smaller cities have begun imposing closures or tightening restrictions on access to cities, particularly affecting external manufacturing locations. We are also closely dealing with disruptions to our suppliers of materials, equipment and services in China.

The relevant teams continue to focus on delivering critical equipment to our customers and do their best to ship products in the fastest way possible. In addition to this, we have started moving to other onsemi sub-districts to ease capacity constraints and help reduce the impact - such as our distribution centers in Singapore and Manila, Philippines.

Despite our many efforts to respond to this force majeure event, including rescheduling to alternate warehouses and expedited shipping methods (i.e. NFO-Next Flight Out expedited air service), we were unable to ship enough material to meet the needs of all our customers .

We are working to consolidate plans for further extended closures. The situation is changing on a daily basis and we will monitor and adjust our approach as needed.

According to public information, ON Semiconductor is one of the world's largest suppliers of analog ICs, logic ICs and discrete semiconductor components.

In the past month, due to the strict prevention and control of the epidemic in Shanghai, factories of many important production enterprises were closed and transportation was blocked, which gradually began to affect the global supply chain. On April 15, it was reported that the Ministry of Industry and Information Technology had dispatched a working group in front of Shanghai to take multiple measures to support the stable production of key enterprises in Shanghai.