The notification letter mentions that Chinese goods have begun to move to other On Mei regions to ease capacity constraints and help reduce the impact - such as distribution centers in Singapore and Manila in the Philippines.

The news caused concern in the industry, and even a few media interpreted this as "Anson Beauty to move out of Shanghai", causing industry discussions.

Wechat group chat records

Ruijing Microelectronics learned that the Shanghai Global Distribution Center is a logistics transfer station for ON Mei, and all the products packaged in the company's China factory are shipped to the global distribution center in Shanghai, which is responsible for packaging products and shipping to customers around the world. The market's close concern about the closure of On Mei's distribution center also highlights China's important position in the international logistics and distribution center of the electronics industry.

Public information shows that onsemi is a well-known semiconductor manufacturer, headquartered in Phoenix, Arizona, focusing on the automotive and industrial end markets, including automotive functions and safety, sustainable energy networks, industrial automation and 5G and cloud infrastructure, with about 34,000 employees worldwide.

On has 43 design centers, 22 manufacturing plants and 8 solution centers around the world. On Mei has three factories in China, located in Leshan, Suzhou and Shenzhen. The company's 2021 global revenue of $6.74 billion, including $1.846 billion in the fourth quarter of last year, by market segment, 35% of the revenue from the automotive business, by region, 60% of the revenue from the Asia-Pacific region.