During 2017, Broadcom executed an adjustment for its authorized distributor structure in China and removed lots of distributors from the franchise list, including several global distributors like AVNET and ARROW. After the adjustment, only 5 companies left on the list, they were Comtech, Serial, WT Microelectronics, Alltek and Sunray.
In a surprise twist, Comtech been removed after the adjustment because of Comtech’s capital problem, then the total number on the franchise list was 4, it had been finally settled. Nevertheless, from the beginning of 2018, another company Serial again been removed from the list. Till now, only 3 companies are authorized distributor of Broadcom in China, they are Sunray, WT and Alltek.
Broadcom’s franchise channel been refreshed a lot during the past 2 years, the windows been closed one after another, market supply chain are now tighter, as estimated, Broadcom’s component price might increase, especially for spot/inventory market.