Huaqiangbei, located in Shenzhen, China, is a trading center and gathering place for electronic components nationwide and even globally, and enjoys a high reputation in the electronics industry. As a place that gathers numerous electronic component suppliers and buyers, Huaqiangbei plays a crucial role in driving the development of the electronics industry.
oneLed by distribution agents, continuously increasing digital layout and keeping up with the times.
According to Anxin, as a spot supply chain enterprise that started in Huaqiangbei and focuses on semiconductor distribution and agency, Innovation Yingke has been actively embracing the development opportunities brought by the changes of the times since its establishment in 2007. Through independent innovation, we have accumulated rich upstream resources and established deep and sustained cooperative relationships with major domestic and foreign manufacturers and agents.
In terms of distribution business, as the core business of the company, Chip Trading Network fully utilizes its long-term accumulated professional knowledge and experience advantages to purchase various brands and models of electronic components products globally through various channels, and obtains profits through sales. As of now, our advantageous international brands for distribution include TI, ST, ON, EVERLIGHT, etc. In many application fields such as consumer electronics, smart home, industrial control, network communication, medical equipment, automotive electronics, instrumentation, security, etc., we can provide one-stop services for domestic and foreign OEM, ODM, EMS, PCBA, IDH and other customers.
Compared to distribution business, authorized agency business has closer cooperation with the original factory because we have the authorization of the original factory. This effectively ensures the delivery time and price of related products, while also providing higher quality solutions and technical support according to customer needs. This provides an important foundation for us to become a qualified supplier system for major clients.
After achieving certain distribution business results on the chip trading platform, we began to extend our business to the agent line, providing new momentum for the company's performance growth. At present, we are collaborating with Youshun Technology, a leading global integrated circuit and power semiconductor IDM manufacturer, to represent its advantageous analog product lines such as operational amplifiers, drivers, interfaces, and regulators, and have a clear competitive advantage in the market.
In recent years, with the rise and wide application of Internet technology, artificial intelligence algorithm and other technologies, the digital transformation and upgrading of electronic component distributors are also accelerating rapidly.
Compared to traditional models, through digital supply chain construction, distributors can not only process large amounts of data more efficiently, but also provide more transparent supply chain services for massive small and medium-sized batch\/small and medium-sized enterprise spot demand orders at lower service costs, covering product selection, source matching, intelligent recommendation, quality control, and other aspects. In addition to distributors, some international original factories, such as TI, have also started building their own online shopping malls to improve product circulation efficiency.
twoUtilizing misplaced competitive strategies, by owning over 10000Plant advantageous spot inventory models to cross the cycle.
Distributors play a bridging role between electronic component design manufacturers and electronic product manufacturers, and are an indispensable and important link in the electronic component industry chain.
For upstream manufacturers, there is a wide variety of electronic components and models, with SPU quantities in the billions, while downstream applications are diverse and demand is diverse. Due to factors such as service costs and specialized division of labor, large upstream factories find it difficult to efficiently and completely meet downstream demand; For downstream electronic product manufacturers, they mainly focus on product research and development and manufacturing. Due to market factors, there are often short-term or long-term fluctuations on the demand side, and there is a certain mismatch between the output on the supply side.
In this context, distributors, with their financial and resource advantages, can not only assist upstream original factories in product market development and customer technical support, but also provide supply chain services to downstream customers, thereby achieving the allocation of electronic components in different markets, regions, and supply periods. At present, about 56% of the global semiconductor sales of $520 billion mainly rely on distributor channels for electronic component procurement, while over 99% of small and medium-sized electronic product manufacturers mainly use this method to purchase materials, with huge market potential.
The trillion dollar market in the distribution industry has attracted numerous participants.
In the global market, according to international e-commerce data, four distributors, including Airui Electronics, Anfuli, Dalian University of Technology, and Wenye Technology, have taken an absolute leading position in the electronic component distribution industry with multiple advantages such as financial strength and authorized resources, showing obvious industry trends; Head effect;. In the Chinese market, due to abundant upstream product line resources and vast downstream markets, there are numerous local electronic component distributors. Although the concentration of local distributors is currently low and their scale is small, based on their respective competitive advantages and development positioning, they can provide more flexible personalized services to domestic customers, thus forming a mismatch competition with overseas distributors.
In 2023, against the backdrop of sustained weak demand and busy inventory clearance on the supply side, the entire distribution industry will not have an easy time. Internationally, in addition to the growth of Wenye Technology, the performance of the four major distributors, including Airui Electronics, Anfuli, Dalian Lianda, and Wenye Technology, has all shown a significant decline. In the Chinese market, the performance of major distributors has mostly declined by more than 30%.
However, starting from the second half of 2023, the entire industry has begun to release some positive signals. By the fourth quarter of 2023, two companies in the industry, Wenye Technology and Dalian University of Technology, had achieved year-on-year revenue growth. In the first quarter of 2024, driven by the rising demand for products such as smartphones, network communication, and artificial intelligence servers, the performance of the two companies continued the growth trend of the fourth quarter. Among them, the revenue of Dalian University of Technology in January increased by 9.89% month on month and 44.73% year-on-year; And Wenye Technology's January revenue also increased by 25.32% month on month and 50.41% year-on-year. From the above data, it can be seen that as the overall semiconductor market gradually improves, the performance of distributors has also gradually increased in 2024.
