WT Microelectronics reduces the impact of TI's termination of distribution agreements by adding new suppliers
Asian electronic component distributor WT Microelectronics held a financial report on the 11th, and Eric Cheng, chairman of the board of directors, said that Texas Instruments’ termination of its distribution agreement was very unexpected, and the worst impact of this incident will be the loss of about NT$60 billion in company’s revenue.
Eric explained that the company is transferring resources and continuing to make business handovers with Texas Instruments. It is expected that the handover will be completed by the end of next year, and the impact on the company is expected to recover in 2-3 years.
In addition, Eric pointed out that if there is no other business to make up after the termination of Texas Instruments' business, it will lose about NT$60 billion in revenue a year. However, the company is now actively transferring resources and is negotiating new suppliers to join.
Looking forward to next year, Eric pointed out that in fact, the market environment is not optimistic next year. Although new applications such as 5G and AI are expected to stimulate market demand, there are too many uncertain factors next year. According to his analysis, the performance of the smart phone market will probably be the same as this year, the auto market and the industrial market are expected to grow under the trend of autonomous driving and production automation. However, the overall market outlook still depends on the automotive market.