From November 5th to 6th, the International Integrated Circuit Exhibition and Seminar (IIC Shenzhen 2024) hosted by Aspen Core, a well-known media in the global electronics industry, successfully concluded at Hall 7 of Futian Convention and Exhibition Center in Shenzhen. As an influential system design summit in the industry, IIC Shenzhen 2024 once again provides a professional communication platform for the semiconductor industry, gathering domestic and foreign electronic industry leaders, managers, design elites, and decision-makers, focusing on major cutting-edge emerging technologies and products, market applications, and supply chain development changes and trends, in order to promote the innovation and steady development of the industry.

At the "2024 Global Electronic Component Distributor Excellence Award" ceremony held at the same time, Shenzhen Chuangshi Technology Co., Ltd. (referred to as "Chuangshi Technology" or "Cytech Systems"), a leading electronic component distributor in the industry, was awarded the "International Potential Star Distributor of 2024 Global Electronic Component Distributor Excellence Award"! This is also the first time that Chuangshi Technology has won this honor after winning in 2023.

Resilience! Facing future market differentiation, supply chain challenges remain!

Winning again is not only a recognition of Chuangshi's technological strength, but also a commendation for its active adjustment of strategies during the transformation cycle. Chuangshi Technology also indicates that this award signifies recognition and affirmation from the market, and is a reward for years of hard work and management. The award itself will also motivate Chuangshi Technology to continue improving its own strength, provide customers with better products and services, and consolidate and steadily enhance its position and influence in the industry.

In 2024, the semiconductor industry is experiencing a strong recovery, but it still presents an unbalanced state, and the supply chain is still filled with many challenges and weak links, intensifying the test of resilience for the distribution industry. According to the latest forecast from the World Semiconductor Trade Statistics Organization (WSTS), the global semiconductor market is expected to grow by 16% in 2024, reaching $611 billion. The main driving force behind this growth comes from logic chips (expected to grow by 10.7%) and storage chips (expected to grow by 76.8%).

Bain&Company also warned in the report that the surge in AI driven demand will put new pressure on the supply chain. At present, the breakthrough of generative AI has led to a surge in GPU demand in data centers, and it is expected that by 2026, the demand for the current generation of GPUs in data centers will double. At the same time, the embedding of AI functions in personal devices will also stimulate the growth of demand for new device purchases. It is expected that by 2026, PC sales will increase by 31% and smartphone sales will increase by 15%. This trend will undoubtedly further exacerbate the tension in the supply chain, especially in the supply of high-end chips and memory.

According to the latest report by McKinsey, up to 90% of surveyed companies will encounter supply chain difficulties in 2024, and the reasons for these difficulties will become more diverse, including geopolitics, natural disasters, and serious constraints on the global circulation of some semiconductor products caused by current trade tensions.

Given the changes in the global economic environment and fluctuations in the electronic component market, differentiation is also a label given by Chuangshi Technology to predict the future market: on the one hand, some traditional electronic component markets may gradually shrink, and on the other hand, the electronic component market related to emerging technologies will experience rapid development.

Based on in-depth research on the first tier market, Chuangshi Technology suggests that the market development in areas such as the Internet of Things, artificial intelligence, and new energy is promising in the coming years. At the same time, in response to this trend change, the company has also made corresponding preparations in product selection, technical reserves, market development, and other aspects.

Refining into steel, consolidating digital hard power in cyclical changes

Since the semiconductor shortage market in 2022, the electronic component distribution sector has experienced various industry fluctuations caused by the combination of black swan events. If the previous PPV+Stage parallel strategy allowed Chuangshi Technology to accumulate a wave of rapid growth. So when the market transitions from shortage to surplus, strategic adjustments are imperative.

Expand new business opportunities, vigorously develop the agency business unit and PPV services, and innovate technology to cope with new challenges. As is well known, the distribution business is accompanied by market fluctuations and has extremely high requirements for information technology. If Chuangshi Technology wants to seize business opportunities in these fluctuations, it must closely monitor market dynamics and customers' future production plans, and adjust inventory levels reasonably. All of this cannot be achieved without advanced digital management.

Introducing a more advanced SAP supply chain system is just the first step. Chuangshi Technology monitors and manages various links such as procurement, inventory, and sales in real-time through an ERP system, greatly improving the transparency and efficiency of the supply chain. In addition, Chuangshi Technology has also introduced LIMS and WMS intelligent warehouse management systems to achieve automated process management, comprehensively improve inventory and logistics management efficiency, accelerate customer demand response speed, and further enhance customer satisfaction.

On the basis of digital assistance, strengthening deep cooperation between upstream and downstream enterprises, establishing closer strategic alliances, achieving information sharing and collaborative operation, and creating practical technology can easily cope with challenges. For example, for products with inventory backlog, actively exploring emerging markets and application areas, and finding new sales channels; In the environment of price decline, we will further optimize our procurement strategy, negotiate more favorable price terms with suppliers, and strengthen cost control in order to enhance competitiveness and improve the overall efficiency and resilience of the supply chain!

Strengthening value-added services is a necessary path in the context of diversified demands

In addition, the recovery of the semiconductor industry in 2024 indicates that the global semiconductor market will continue to expand in the coming years. However, with the rapid growth of investment and the continuous expansion of production capacity, the industry will also face new risks of supply-demand imbalance. At the same time, the intensification of market differentiation will also bring about differences in the development speed of different regions and industries, and customer demands will become more diversified.

Chuangshi Technology has found that in the past few years, many foreign OEMs have changed their attitude towards Chinese semiconductor manufacturers and their acceptance of domestically produced chips has continued to increase. After keenly sensing this change, Chuangshi Technology has also begun to explore more high-quality domestic chip agency businesses. Its subsidiary, Shenzhen Chuanghuaxin Electronics Co., Ltd. (referred to as "Chuanghuaxin" or "CHCHIP"), which focuses on promoting domestic chips and modules, has taken on this responsibility.

For example, Shanghai Fengjia, which focuses on low-power Bluetooth main chips, has a fully self-developed Bluetooth protocol stack and rich market product application development capabilities; For example, Guangdong Renmao, which has a rich range of product types and applications in the field of power devices, is not only a well-known high-tech enterprise in semiconductor packaging and testing in China, but also a national level specialized and innovative small giant enterprise; For example, Guangzhou Aipu, which focuses on AC-DC and DC-DC high-frequency module power supplies, as a 20-year brand enterprise and high-tech enterprise, has rich product design experience and comprehensive power solutions and products. At present, Chuanghuaxin has accumulated excellent domestic manufacturer resources in their respective fields, including Lorentz, Aipu, Renmao, Youfang, Fengjia, Huimang, Qinheng, Bern, Jinyu, Chengxinwei, Xianji, Muxi, etc.

On the basis of introducing domestic agent lines, Chuangshi Technology further refines its own services - providing customized solutions including product selection, technical support, and after-sales service. In addition, Chuangshi Technology has explored many new supply channels, introduced online sales platforms, combined with offline sales teams and service outlets. On the one hand, it integrates more competitive product lines, and on the other hand, it integrates technology solutions to add value. Combined with online and offline integrated services, it provides customers with a more portable and efficient procurement experience.

With a sound quality management system and agile response to customer needs as the cornerstone of service, Chuangshi Technology continuously expands its capabilities, such as going global.

Developing overseas customers and businesses is something that Chuangshi Technology has been planning for several years. In the future, the electronic component distribution industry will inevitably face multiple challenges such as increased market competition, rapid technological updates and iterations, and diversified customer demands. How to enhance the visibility of Chuangshi Technology overseas has become a top priority.

Deepening the customer base to global OEM, EMS, ODM, and other areas has become a strategic focus for Chuangshi Technology. In August of this year, Chuangshi Technology reached an authorized agency cooperation with Torex, a top Japanese power management IC manufacturer. In terms of overseas layout, Chuangshi Technology has stated that it will gradually expand its business to Japan, Singapore, Malaysia, Thailand, Vietnam and other places, continuously increase its market share, in order to become a leading enterprise in the electronic component agency and distribution industry. Despite the relentless efforts of the hard technology industry to enhance the resilience of the global supply chain, the supply chain is still filled with many challenges and weak links. Of course, all of these are opportunities for those who are brave enough to move forward!

About Chuangshi Technology

Shenzhen Cytech Systems Limited - "Excellent Distribution, Connecting the Future", is a leading electronic component distributor deeply rooted in China and radiating globally, committed to creating sustainable value for customers and promoting innovation and development in the supply chain industry.

Chuangshi Technology was jointly founded by senior professionals in the electronic information technology and supply chain distribution industries. With decades of industry experience in the electronics industry chain, it connects global supplier networks and becomes a powerful support for high-quality sources of goods. Through diversified procurement services, it provides personalized, customized, agile, and high-quality supply chain solutions to thousands of customers in more than 50 countries, including Fortune 500 companies. While helping customers optimize costs and improve efficiency, it grows together with customers to achieve win-win results.

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry

They are committed to providing customers around the world with the most necessary, outdated, licensed, and hard-to-find parts.

Media Relations

Name: John Chen

Email: salesdept@topcomponents.ru