SINGAPORE – June 7, 2011 – ON Semiconductor (Nasdaq: ONNN) a premier supplier of high performance silicon solutions for energy efficient electronics, has opened its new Singapore hub for global distribution. The new $3.5 million state-of-the-art facility was built and implemented in partnership with DHL.
“The Singapore Global Distribution Center (GDC) was designed to increase storage and throughput capacity and improve overall productivity,” said John Nelson, executive vice president and chief operating officer for ON Semiconductor.” Our expanded Singapore operations will improve the velocity of our just-in-time shipments to customers and distribution partners, enable more customized logistics processes, and reduce labor expenses. Singapore was an ideal location for this distribution operation because it offers a centralized regional location with close proximity to our customers and to our manufacturing, assembly and test operations located in South Asia.”
Oscar De Bok, CEO for South and Southeast Asia, DHL Supply Chain added: “At DHL we are committed to delivering world class solutions to the semiconductor industry in Asia and beyond. By partnering with ON Semiconductor we have together developed and implemented a strong solution which we believe will set the benchmark for global fulfillment in the industry and have created a clear competitive advantage for ON Semiconductor.”
The Singapore GDC is dedicated to shipping finished goods to its worldwide customer base, acts as a global customer sample center, stores die and wafers for shipment to assembly and test operations, and serves as a local hub for consolidation and delivery of products to customers in South Asia. This facility is now the largest distribution facility serving the semiconductor industry located in Singapore.
- More than half of the 38 billion devices ON Semiconductor produces and ships annually are expected to pass through the company’s Singapore GDC.
- The new 95,000 square-foot Singapore GDC is double the size of the regional distribution center ON Semiconductor previously operated in Singapore.
- Approximately 150 employees of DHL, ON Semiconductor’s strategic logistics partner throughout Asia, currently work at the Singapore GDC.
- ON Semiconductor expects supply chain productivity within its regional operations to improve by more than 15 percent as a direct result of the expanded and automated facility.
“We are grateful for the local support provided us during the selection, planning and construction of this state-of-the-art distribution center,” said Nelson. “This distribution center is an investment in both the future of ON Semiconductor and reaffirms Singapore’s position as an international center for distribution within the electronics industry. ON Semiconductor had a need to expand its distribution capacity to address increasing customer demands and to consolidate its distribution operations for its growing product portfolio. Singapore offered a centralized regional location with close proximity to our customers and our manufacturing, assembly and test operations located in South Asia.”
Singapore EDB Assistant Managing Director Yeoh Keat Chuan commented: “We welcome ON Semiconductor’s decision to locate its global distribution centre (GDC) here in Singapore. This highly automated GDC is very much in line with Singapore’s drive to promote greater productivity in warehousing and logistics operations. With electronics supply chain and customer base shifting to Asia, Singapore, as the leading logistics hub in Asia, has the capabilities that enable electronics companies to optimize their supply chains for quick turnaround time. The presence of major third party logistics providers also provides a compelling case for distribution centres in Singapore. Today, most of the top 25 third party logistics service providers have significant operations here.”