Affected by the epidemic, ON Semiconductor closed the "China Global Distribution Center" in Shanghai

ON Semiconductor said: In addition to the closures in Shenzhen, Suzhou and Leshan affecting local operations, smaller cities have begun to implement closures or tighten restrictions on entry into cities, especially affecting external manufacturing locations. At the same time, ON Semiconductor is also closely responding to disruptions to material, equipment and service suppliers in China.

ON Semiconductor is one of the top ten semiconductor suppliers in the automotive industry. Its products are used in many fields in automobiles, including on-board chargers, high-voltage load battery management, DC-DC, high-voltage powertrain, main drive inverter, 48V belt-driven starter-generator (BSG), ADAS, infotainment, door, seat control, etc.

In addition, ON Semiconductor CMOS image sensors are also widely used in the automotive field. According to relevant statistics, in the automotive CIS field, ON Semiconductor's market share exceeds 50%, ranking first. According to data from the third-party market research company TSR (Techno Systems Research), ON Semiconductor occupies more than 60% of the global automotive imaging (for human eyes) market, such as driver, passenger, rear view, surround view, and electronic rearview mirror; in the automotive perception market (i.e., perception systems for artificial intelligence and machine vision), ON Semiconductor occupies more than 80% of the global market share.

Revenue in 2021 was $6.74 billion, up 28.3% year-on-year. Revenue in the fourth quarter was $1.8461 billion, with GAAP and non-GAAP gross margins of 45.1% and 45.2%, respectively. At the same time, free cash flow in 2021 increased by 167% year-on-year.

Affected by the epidemic, since March, the closure of factories and transportation obstructions of many key manufacturing enterprises in Shanghai have gradually begun to affect the global supply chain. Huawei Consumer Business CEO and Intelligent Automotive BU CEO Yu Chengdong once wrote that if Shanghai cannot resume work and production, all technology/industrial industries involving Shanghai supply chain will be completely shut down after May, especially the automotive industry. Fortunately, on the evening of April 16, the Shanghai Economic and Information Commission issued the "Guidelines for Epidemic Prevention and Control for the Resumption of Work and Production of Industrial Enterprises in Shanghai", stating that on the premise of ensuring that risks are controllable, closed-loop management should be implemented to effectively and orderly promote the resumption of work and production of enterprises and ensure the safety and stability of the industrial chain and supply chain.

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