(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
|
|
| Semiconductor Parts Distributors to Challenge Taiwan Competitors
|
|
August 19, 1998 (TAIPEI) -- Arrow Electronics Inc. and Avnet Inc., two
U.S.-based distributors of semiconductor parts, bolstered their relationships
with three Taiwan agents recently.
|
They aim to compete more effectively in the semiconductor and electronic
components distribution market in Taiwan.
Sharp growth in the local semiconductor industry, coupled with the information
industry's growing demand for semiconductor parts, has created a market
for semiconductor components distribution. Arrow Electronic and Avnet
were thus attracted to Taiwan, and made mergers in a blitzkrieg fashion
to earn themselves enough footing in the market.
Arrow Electronic now owns 75 percent and 45 percent of the shares in
two local companies, respectively. And Avnet grabbed away 80 percent
of the shares in Mercury & Associates' semiconductor distribution branch.
However, World Peace Corp. and Yusun Industrial Corporation, two major
local distributors, said that the threat from Avnet and Arrow is limited
because local semiconductor manufacturers are more inclined to cooperate
with local distributors due to their efficient handling and better post-sales
service.
K.T. Tseng, executive chairman of Yusun Industrial, indicated that local
distributors are very familiar with the operations of the local market.
Therefore, foreign distributors are hardly a threat in the Taiwan market,
despite their shogun-style marketing campaigns and strong financial
backings.
World Peace and Yusun are targeting annual sales at NT$7.5 billion (US$215
million) and NT$5.8 billion, respectively, in 1998, exceeding Avnet
and Arrow by a large margin.
(Commercial Times, Taiwan)
|
|
|
