Recently, the Munich South China Electronics Exhibition was grandly opened at the Shenzhen International Convention and Exhibition Center (Bao'an New Hall). The exhibition, based on the Guangdong Hong Kong Macao Greater Bay Area, radiates markets in South China, Southwest China and Southeast Asia. It brings together popular technologies and applications such as artificial intelligence, data center, new energy storage, wireless communication, hardware security, new energy vehicles, the third generation semiconductor, edge computing, industrial Internet and the Internet of Things, and gathers a number of well-known enterprises at home and abroad. It not only comprehensively presents cutting-edge technologies in the electronic innovation industry chain, but also attracts high-quality buyers and elites in large quantities of industries, further promoting cross-border cooperation and in-depth collaboration.

Shenzhen Chuangshi Technology Co., Ltd. (referred to as "Chuangshi Technology" or "Cytech Systems"), a leading electronic component distributor with the Greater Bay Area as its core base, joined hands with its subsidiary Shenzhen Chuanghuaxin Electronics Co., Ltd. (referred to as "Chuanghuaxin" or "CHCHIP"), which focuses on promoting domestic chips and modules, at booth 3A09 in Hall 3 of the South China Electronics Show. They hope to use this high-quality innovation exhibition platform to comprehensively promote various business lines of Chuangshi Technology and strengthen their brand power in the electronic component distribution industry.

　　Figure 1. Shenzhen Chuangshi Technology Co., Ltd. appears at the Munich South China Electronics Show to strengthen its industry position

　　The global semiconductor market is improving from 2024 to 2025, but the distribution industry still faces pressure to survive

　　With the increasing demand for global artificial intelligence (AI) and high-performance computing (HPC), as well as the recovery of demand in markets such as smartphones, personal computers, servers, and automobiles, the semiconductor industry is ushering in a new wave of growth. In June, the World Semiconductor Trade Statistics Organization (WSTS) raised its expectations for the global semiconductor market, expecting a 16% growth and a market value valuation of $611 billion by 2024. It is reported that this growth is mainly due to strong performance in the past two quarters, especially in the computing terminal market. In contrast, WSTS predicted at the beginning of this year that the global semiconductor market would grow at a year-on-year rate of 13.1% in 2024, with a total size of $588.36 billion. Coincidentally, WSTS expects strong market growth in both 2024 and 2025.

　　Figure 2. WSTS predicts that the global semiconductor market will experience growth in both 2024 and 2025

But for the electronic component distribution market, it is still under heavy pressure. Due to the long tail effect caused by the sluggish market situation before, the profit margin of the distribution industry is further compressed. Currently, the global electronic component distribution industry is showing a head concentration effect, especially among international players. Compared to overseas markets, the concentration of the domestic electronic component distribution industry is still relatively low. However, with the continuous improvement of technical complexity and application specialization requirements in the electronic information industry, traditional distribution models can no longer fully meet customer needs.

Customers demand distributors to provide more value, such as price, delivery time, technical support, etc., "said Alice, General Manager of Chuangshi Technology