Recently, WPG, the world's second largest component distributor, issued an announcement that its subsidiary SAC Group was notified by NXP that it has terminated the distribution contract on March 1, 2022 due to business adjustments.

Founded in March 1987, SAC Group is mainly engaged in the sales of semiconductor components, with revenue of more than US$3.504 billion in 2021. Its product line includes well-known semiconductor brands such as Infineon, Samsung, Nexperia, Intel, and Microchip.

According to WPG's announcement, SAC Group's nxp business accounted for 1.52% of WPG's and 11.76% of SAC Group's total purchases in the consolidated statement.

WPG said that NXP's adjustment of authorized channels is a normal business activity and has little impact on the group. The impact on WPG's revenue is expected to be approximately 1.06% of last year's total revenue.