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TI officially confirms End of Avnet's agency on December 31 2020


 





 



TI officially confirms: End of Avnet's agency on December 31, 2020!
 
Texas Instruments (TI) notified Avnet on Tuesday (October 1) that it would end its distribution relationship with Avnet on December 31, 2020, according to an October 4 filing with the U.S. Securities and Exchange Commission.

 
 























 




According to Avnet's latest 2019 financial results, Texas Instruments' products account for 10 percent of Avnet's sales, and as a result of the news, Avnet's share price began to fall sharply. Avnet's shares have fallen 10.48 per cent to $39.22 so far.

 
 


























 

Why terminate its partnership with Avnet?
 
Texas Instruments said it plans to end its distribution relationship with Avnet on December 31, 2020, as a result of changes in the company's development strategy. "Over the past few years, we have been developing our distribution network to better align with our strategic partners and build closer, more direct relationships with our customers," Texas Instruments said. As we establish these direct relationships, the volume of business through distribution channels will gradually decrease, and therefore the needs of distributors will decrease. "

 
 


























 

Avnet is one of the world's largest distributors of electronic components, computer products and embedded technology, is the world's top 500 companies, founded in 1921, headquartered in Phoenix, the United States, serving customers in more than 70 countries around the world.
Headquartered in Singapore, the company has more than 50 sales facilities in 10 countries in Asia, distributing semiconductors, interconnects, passive and electromechanical components, providing design chain and supply chain support for different customer services for original equipment manufacturers (OEMs), electronic manufacturing services (EMS) suppliers and small and medium-sized enterprises.
In response to Texas Instruments' decision, Avnet said it will continue to look for opportunities to support current and future customers while reducing operating costs. By contrast, Texas Instruments' share price has not been affected. So far, Texas Instruments' shares are up 0.68 percent at $129.58.

 
 






















 

Avnet CEO William Amelio issues internal letter