According to supply chain, after the acquisition of Maxim, ADI announced that it has ended the authorized distribution relationship between Maxim and Avnet and will sign a global distribution agreement with Arrow. Prior to this, Maxim accounted for approximately 3% of Avnet’s 2021 sales.
Insiders in the supply chain said that when semiconductor manufacturers merge, they usually adjust their distributors, which is not surprising.
For many years, ADI has been selling its products through the world's largest distributors Arrow and Avnet. However, after acquiring Linear Technology in 2017, it chose Arrow to become its global distribution strategic partner, and the distribution agreement with Avnet was terminated the day before ADI chose Arrow.
In 2019, 22% of Maxim’s sales were sold through Avnet, which was approximately $500 million. Insiders said that after the adjustment of distributors is completed, ADI's business will be very profitable for Arrow.