Aggressive Deployment in China’s Hotspot Markets, WPG Optimistic about Consumer Electronics, Energy Conservation Market Applications
2009-05-11
WPG, the No. 1 electronics distributor in Asia, has attained the position of the third largest semiconductor components distributor in the world since it launched a series of merger and acquisition initiatives in 2008. In 2008, the group was able to take advantage of strong market demand for “mobile handsets, color television sets, LED, passive components, automotive electronics, and LCD drivers.” In particular, driven by the two major hotspot markets, automotive electronics and LED lighting, WPG’s revenue has risen year after year, with the highest production output currently being the LCD-TV market, driving the growth of the single chip market and consumer electronics market WPG’s sales in China has seen commensurate growth, with accumulated revenues in 2008 reaching US$3.5 billion, accounting for 78% of the group’s total revenue and representing a 10% increase over the previous year.
WPG Optimistic about Applications in Consumer Electronics, Energy Conservation Market
Following The Chinese Central Government’s 4 trillion investment that is driving domestic demand and the series of policy initiatives such as “household appliances and automobiles for rural areas,” which are designed to vitalize the country’s economy, the demand for electronic component applications is also on the rise. This will in turn drive the demand for personal computers, laptops, mobile phones and consumer electronics (home appliances, digital cameras and television sets). WPG China’s managing director Bai Zongren points out that “WPG Group will focus on the energy conservation market, automotive electronics, mobile phones (including 2G, 2.5G, 3G), home appliances, multimedia video and low-priced laptops in 2009”. WPG has consolidated related product offerings and applications of its five sub-groups (which include World Peace Industrial Group, Silicon Application Corp., RichPower Electronic Devices, Pernas Enterprise and AIT Group) and has introduced a series of product designs as well as design solutions that have shorter manufacturing cycles, are less expensive and more functionally diverse.
In response to rapidly growing market growing, WPG will further enhance the product lines that the group currently distributes. Products from the following companies will be added to its line-up: Amotech (South Korea), Grenergy, TXC, Ta-I Technology, Kemet (U.S.), Wintek, K. S. Terminals, and others, so that the group can continue to increase the sales of 4C (Computer / Communications / Consumer Electronics / Automotive) and energy conservation components. From analyzing current applications, most of them remain in the consumer electronics areas, e.g. AAC Acoustic’s acoustic products, Quinitic’s FM transmitter chip, CMMB’s digital TV demodulator chip, and Ta-I Technology’s universal passive components. In the first half of 2008, WPG acquired Pernas Enterprise, a passive component distributor, further expanding its share of passive devices in the market. In the second half of the year the acquisition of AIT Group strengthened the group’s distribution of Bluetooth and communications products. With the two sub-groups’ contribution, WPG now distributes more than 200 product lines, making the market scope more comprehensive and extensive with a wider client base. It is expected that with the continuing effects of synergy, WPG will achieve even greater economies of scale and a larger market share in the Asia-Pacific region, ultimately improving the group’s profitability and return for shareholders.
WPG Economies of Scale
Proving Effective Supply Chain Services and Support
As a mainstream supplier of electronic components, WPG has been collaborating with manufacturers on design-in and turn-key solutions on behalf of customers, in addition to a comprehensive sales and service platform, over 200 production lines in its distributorship, and access to local Chinese manufacturer resources. This helps customers achieve faster time to market and provides the most complete sales mix. The information that WPG has access to is also disseminated real-time through WPG Times, which provides customers with new technology applications and solutions, adding weight to the existing value-added services. Facing the ever-fluctuating market demand, the WPG platform is able to provide an early response system and coordinate and revise upstream and downstream supply chain arrangements with its “BOM optimization services,” so that component overproduction or shortage can be avoided, with a view to “building the global supply chain” and taking steps to shorten the lead time of the supply chain as well as to reduce cost. WPG China’s managing director Bai Zongren says, “With the WPG information platform providing integration and coordination services, the group is not only able to create added values for the industry but also optimize customers’ requirements via the comprehensive integration of information flow and logistics to meet suppliers’ planning. This way, things are more transparent between the market, customer demand and supplier production planning, providing the greatest value over the complete supply chain.”
WPG Optimistic about Applications in Consumer Electronics, Energy Conservation Market
Following The Chinese Central Government’s 4 trillion investment that is driving domestic demand and the series of policy initiatives such as “household appliances and automobiles for rural areas,” which are designed to vitalize the country’s economy, the demand for electronic component applications is also on the rise. This will in turn drive the demand for personal computers, laptops, mobile phones and consumer electronics (home appliances, digital cameras and television sets). WPG China’s managing director Bai Zongren points out that “WPG Group will focus on the energy conservation market, automotive electronics, mobile phones (including 2G, 2.5G, 3G), home appliances, multimedia video and low-priced laptops in 2009”. WPG has consolidated related product offerings and applications of its five sub-groups (which include World Peace Industrial Group, Silicon Application Corp., RichPower Electronic Devices, Pernas Enterprise and AIT Group) and has introduced a series of product designs as well as design solutions that have shorter manufacturing cycles, are less expensive and more functionally diverse.
In response to rapidly growing market growing, WPG will further enhance the product lines that the group currently distributes. Products from the following companies will be added to its line-up: Amotech (South Korea), Grenergy, TXC, Ta-I Technology, Kemet (U.S.), Wintek, K. S. Terminals, and others, so that the group can continue to increase the sales of 4C (Computer / Communications / Consumer Electronics / Automotive) and energy conservation components. From analyzing current applications, most of them remain in the consumer electronics areas, e.g. AAC Acoustic’s acoustic products, Quinitic’s FM transmitter chip, CMMB’s digital TV demodulator chip, and Ta-I Technology’s universal passive components. In the first half of 2008, WPG acquired Pernas Enterprise, a passive component distributor, further expanding its share of passive devices in the market. In the second half of the year the acquisition of AIT Group strengthened the group’s distribution of Bluetooth and communications products. With the two sub-groups’ contribution, WPG now distributes more than 200 product lines, making the market scope more comprehensive and extensive with a wider client base. It is expected that with the continuing effects of synergy, WPG will achieve even greater economies of scale and a larger market share in the Asia-Pacific region, ultimately improving the group’s profitability and return for shareholders.
WPG Economies of Scale
Proving Effective Supply Chain Services and Support
As a mainstream supplier of electronic components, WPG has been collaborating with manufacturers on design-in and turn-key solutions on behalf of customers, in addition to a comprehensive sales and service platform, over 200 production lines in its distributorship, and access to local Chinese manufacturer resources. This helps customers achieve faster time to market and provides the most complete sales mix. The information that WPG has access to is also disseminated real-time through WPG Times, which provides customers with new technology applications and solutions, adding weight to the existing value-added services. Facing the ever-fluctuating market demand, the WPG platform is able to provide an early response system and coordinate and revise upstream and downstream supply chain arrangements with its “BOM optimization services,” so that component overproduction or shortage can be avoided, with a view to “building the global supply chain” and taking steps to shorten the lead time of the supply chain as well as to reduce cost. WPG China’s managing director Bai Zongren says, “With the WPG information platform providing integration and coordination services, the group is not only able to create added values for the industry but also optimize customers’ requirements via the comprehensive integration of information flow and logistics to meet suppliers’ planning. This way, things are more transparent between the market, customer demand and supplier production planning, providing the greatest value over the complete supply chain.”