On October 22nd, Cypress Semiconductor issued an open letter to its customers announcing that it would cancel the authorization of the three authorized distributors.
According to the open letter, Cypress has acquired four semiconductor companies in the past three years, and the number of its authorized distributors has doubled. In order to provide better service to customers, Cypress has decided to cancel the agency qualifications of the three distributors, which are Jetronic, Ingdan and Action Technology.
In fact, on May 1, 2017, Cypress terminated Avnet, Silica and EBV as its authorized distributors, and now canceled three agents in the Asia Pacific region, plus Cypress opened an online store in China in September. Supply chain speculate whether semiconductor companies are looking for a new direct sales channel to reduce their reliance on authorized distributors.
The following is the original text of the open letter from Cypress.