A few days ago, Taiwan's largest component distribution holding group held a board meeting to announce that the Texas Instruments (TI) product line business delivery of its Youshang agent was completed on April 1, 2017, and transferred to its Shiping agent.
As this is an internal transfer of the product line of the General Assembly, it has no impact on the company's performance and profit.
According to the plan, Shiping will issue 116 million ordinary shares to the General Assembly on the date of completion of the transaction in exchange for relevant operating assets and liabilities, and the completion time of the separation between the two parties is tentatively set at 2017. April 1st. For the year ended December 31, 2016, Youshang's self-closing financial statements estimated that the operating income of the Texas Instruments product line before the completion of the division was approximately NT $2,429 million.
Youshang and Shiping are TI's main agents in the Asia-Pacific region, and the agency business of both sides has some overlap, Youshang's business volume is not large, and later Shiping will be fully operated. The General Assembly said that the move is mainly to cooperate with suppliers to optimize the agency channel strategy and adjust the group's organizational business to improve competitiveness and business performance.
For a long time, the entire industry has been following the industrial chain model from the original factory - agents - spot traders/design companies - terminal manufacturers. Because the customer base is widely dispersed and the project needs are wide, the original factory is often due to lack of engineering resources and limited energy, and has no time to take care of customers outside the large manufacturers. Then, when the customer needs a more complete design solution, the original authorized agent will be close to the customer, and its technical support and design services came into being.
In recent years, TI has been busy with major channel strategy adjustment, closing the intermediate links, constantly weakening the proportion of distribution channels, and building direct sales channels by itself, and building offline teams by themselves, so as to avoid directly providing design services to large customers.
Youshang gave up the TI agent line to Shiping, the General Assembly can optimize the internal structure, TI also completed the reduction of an agent, for both sides are taking advantage of the situation.
In fact, TI has been rooted in China for 30 years, has established a huge semiconductor agent sales network in China, set up numerous DSP laboratories, and has a very strong technical support team, but also has an 8-inch wafer factory in Chengdu and plans to expand.
According to this newspaper previously reported that TI for the blue 5S supply of flagship function 18W high power fast charge successfully for 100 yuan machine, the cost of the whole program is about 78 pieces, of which BQ25896, TI gave a wholesale offer of 2 US dollars per thousand, the price is not cheap.
At present, it seems that TI does not have much problem to get rid of distributors and serve customers on its own.