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China Electronics Distributor Alliance is Established

China Electronics Distributor Alliance is Established

Founding CEDA members include top international and Chinese franchised distributors

March 4, 2011, Shenzhen Guangdong Province, China – The China Electronics Distributor Alliance (CEDA) was established today in Shenzhen at a meeting of top industry executives. The Alliance’s founding members include top international and Chinese distributors, and leading global electronics component suppliers.

“Congratulations to CEDA,” said Shijing Diao, Deputy Director-General at Department of Information Technology Industry of China’s Ministry of Industry and Information Technology (MIIT). “We hope to see more service innovation in electronics distribution through CEDA as this is a very important sector in China’s electronics supply chain.”

Until the formation of CEDA, there was no industrial organization for the electronics distribution sector in China. The organization’s mission is to represent franchised distribution services in the China market, strengthen cooperation between distributors and suppliers, encourage technical and service innovation, and work with the Chinese government to shape policies. In addition, CEDA will help member companies identify new market opportunities, establish strategic partnerships, and provide professional services for distributors in business transformation, business development, initial public offerings, and financing.

Founding members of CEDA include international distributors Arrow Electronics Inc., Avnet Inc., Digi-Key Corp., Future Electronics, Mouser Electronics Inc., Richardson Electronics Ltd., RS Components Ltd., and WPG Electronics.

“We are excited to be a founding member of CEDA.,” said Ken Lee, vice president of Avnet Sunrise. “The organization can deepen our business development in China.”

Additional international and Chinese CEDA members include Alignment, Asiacom, Comtech, element 14, FCI, Honestar, Interine, Jiangsu Sunlord, Letdo Electronics, Lierda, Micon, Mornsun CE-Power, Seeddsp, Shanghai Linpo, Shenzhen Sunlord, SSMEC SZCEAC, Taiyo Yuden, Techtronics, and Zetron.

“The Chinese distribution sector has developed very rapidly so we are looking to CEDA to help with the professional development of domestic distributors so we can be globally competitive,” said Paolo Wang, president of Honestar.

The establishment of CEDA is supported by the International Distribution of Electronics Association (IDEA) and its worldwide members, including Electronic Component Supply Network (ECSN), Electronic Components Industry Association (ECIA) and other distribution associations around the world. China Electronic Appliance Corporation (CEAC), CNT Networks, and China Outlook Consulting (COC) hosted the CEDA inaugural luncheon at the March COC Forum in Shenzhen.

“CEDA will enhance closer cooperation between component distributors and their suppliers, which will improve distributors’ contribution to technical and service innovation in new markets,” said Michael Liu, CEO of CNT Networks. “Because China’s electronics manufacturing industry is spread across the country and emerging markets are wide open, distributors have great potential for growth in China.”

“We are happy to support CEDA’s development through the sharing of IDEA’s resources,” said Gary Kibblerwhite, chairman of IDEA. “As China has become a major part of the global distribution value chain we are looking forward to cooperating with CEDA for market research.”

CEDA plans to publish China distribution statistics with input and cooperation from its membership, according to Amy Wang, vice president of China Outlook Consulting and CNT Networks. Utilizing the servicers of 3rd-party research firms CEDA will analyze the data and produce periodic industry reports. “The task is vital to distributors for managing their own operations and for supply-chain forecasting,” said Wang.

In the last decade, China has emerged as a key player in the world’s electronics supply chain, and production services have become increasingly important. The services sector, including electronics component distribution, is a focus of China’s 12th Five-Year Plan (2011-2015).

“The alliance will bridge the electronics distribution industry and government bodies so that we can build industry rules and develop policies in the future,” said Wenhai Chen, vice president of CEAC. “Although electronics distributors have been movers of innovation in China, there are no policies in place to regulate the industry. CEDA will influence the Chinese electronics distribution industry and the related supply chain deeply,” he said.

ABOUT CEDA

The China Electronics Distributor Alliance is a non-profitable organization that serves the needs of franchised electronics component distributors with operations in greater China. CEDA members will be primarily franchised electronics distributors and manufacturers but will also include independent design houses, supply-chain service provider, and academic and research firms. CEDA’s mission includes enhancing executive networking, establishing distribution regulations and standards, promoting the value of value-add services and sharing supply-chain market intelligence and improve collaboration of distribution chain. Please visit China Electronics Distribution Alliance online at

www.cedachina.org

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