Navigating the Chip Crisis: ON Semiconductor's Response

ON Semiconductor's CEO, Hassane El-Khoury, addresses the automotive industry's chip shortages, largely attributed to low inventory levels and supply chain disruptions. The company is attempting to alleviate the impact by offering products from its own portfolio to affected customers, amidst Nexperia's production issues.

ON Semiconductor Corp is stepping up to support automotive customers grappling with chip shortages due to complications faced by Dutch chipmaker Nexperia. CEO Hassane El-Khoury announced on Monday that the company is providing solutions from its existing product lineup to help mitigate the impact.

El-Khoury emphasized that ON Semiconductor has chosen not to alter its manufacturing plans. Instead, they are leveraging their current portfolio to back their clients. He attributes the crisis primarily to the automotive industry's practice of maintaining minimal chip inventories, which heightens vulnerability to supply chain hiccups.

Nexperia, a significant creator of basic automobile electronics chips, faces production disadvantages amid corporate and geopolitical disputes, causing ripple effects in car manufacturing. Echoing sentiments from STMicroelectronics, El-Khoury highlights the industry's strategic shift towards sourcing from multiple chip suppliers to hedge against similar disruptions in the future.

(With inputs from agencies.)