Affected by the outbreak of COVID-19, Onsemi issued a notice to its customers about the shipment.
With the enhanced governmental lockdowns, their China Global Distribution Center has been shut down and resulting in the obstruction of carrying out their daily business. Onsemi has begun moving to other onsemi locations to relieve capacity restrictions and aid in reducing the impact. However, it still cannot meet all customers’ demands. onsemi's materials, equipment, and services have faced a risk of interruption.
As a chip design and manufacturing company, onsemi covers a considerable hug part of the production process of the semiconductor industry chain. Onsemi's back-end manufacturing is mainly located in China, the Philippines, Vietnam, etc., while the front-end and substrate manufacturing plants are mainly located in Japan, the United States, the Czech Republic, etc. Most of the factories in China are packaging and testing factories, and their local business has been affected by the COVID-19 in Shenzhen, Suzhou, and Leshan. The Shanghai Solution Engineering Center is the only one of onsemi in Asia after the German Solution Engineering Center. Shanghai and Manila are onsemi's global distribution centers, which provide customers with fast service. Therefore, the outbreak of the COVID-19 in Shanghai directly hindered its chip shipments in Asia and even the world.
Source: shutterstock
At present, onsemi's products are in relatively short supply, and the lead time of some products continues to be extended, such as sensors in analog devices, which are 18-52 weeks, and most discrete devices are also more than 50 weeks.
Many of Onsemi's products are leading the industry in the automotive field, such as automotive image sensors, and dedicated chips for ultrasonic sensors for autonomous driving and parking assistance, all ranking first. As an emerging leader in lidar for ADAS, with SiC and IGBT power modules for EV/HEV, power management for automotive CPU, LED lighting, and body electronics. Therefore, it is still in great demand in the market, and the price of the product remains high. It was originally in a state of supply shortage, coupled with the continued instability of the epidemic, it will not ease in the short term.
The blocking and stagnation of electronic components will cause a chain reaction in the production of downstream terminals. Onsemi is the first leading auto chip manufacturer to issue a warning. It remains to be seen how other major manufacturers will be affected by the epidemic, but it is inevitable that the auto industry will be affected.
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