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Avnet bullish on China's growth

By MA SI | China Daily | Updated: 2024-04-16 09:14

A logo sign outside of the headquarters of Avnet Inc, in Phoenix, Arizona, on Feb 3, 2018. [Photo/IC]

Avnet, a US-based semiconductor technology distributor and solutions provider, is optimistic about China's long-term growth potential and sees abundant opportunities from the country's emphasis on the digital economy and low-carbon transformation, a senior company executive said.

Grace Dong, president of Avnet China, said the country is actively fostering its digital economy, championing green and low-carbon transformation and persistently bolstering technological innovation as well as the resilience of the industrial supply chain. These efforts have infused robust impetus into the high-quality development of the economy.

"And these industry development initiatives have also bolstered Avnet's confidence in its long-term commitment to the Chinese market. We will continue investing in the Chinese market, closely aligning with market and customer needs for business development and seek mutually beneficial outcomes within the Chinese semiconductor market."

To make use of the opportunities, Avnet has established a dedicated unit for ventures in new energy facilities and infrastructure markets for wind and solar power, energy storage and EV charging.

"This unit brings together a diverse range of professionals, successfully supporting R&D projects for numerous industry clients. Moving forward, we are committed to reinforcing our investments and strategic positioning in this sector, thereby ensuring better application support for China's dual-carbon objectives," Dong added.

China is the world's largest semiconductor market. The Chinese mainland consumes more than half of the world's semiconductors, which are then assembled into tech products to be reexported or sold in the domestic market, according to research firm Daxue Consulting.

On China's recent emphasis on new quality productive forces, Dong said technological innovation relies on foundational support from the chip industry.

Avnet has consistently kept a watchful eye on Chinese chip manufacturers. In China, not only are there cutting-edge opportunities in areas such as artificial intelligence, healthcare and big data but also growing demand for the development of domestic chips.

Additionally, there is an urgent need for local customers to expand internationally, aligning with the semiconductor industry's ventures beyond Chinese borders, Dong said.

"We have also observed certain Chinese domestic semiconductor companies that, over the past three years, have undergone market validation and demonstrated outstanding development potential," she said.

She said Avnet welcomes local semiconductor enterprises that can leverage the expansive Chinese market as a starting point for their journey abroad. With the support of Avnet, these semiconductor companies can establish their sales networks beyond Asia, expanding into regions such as Europe and the Americas, she added.

Zhang Li, secretary-general of the China Semiconductor Industry Association, said despite facing challenges such as a global industrial downturn, sluggish markets, and an unstable trade environment last year, China's semiconductor industry demonstrated strong resilience and potential, driven by its vast domestic market.

Zhang said the global semiconductor industry, stimulated by demand from AI, is expected to witness a rebound this year.

China's rapid, robust and assured market demand requires support from the global industrial chain, while also presenting significant development opportunities for the global chain.

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