Appeared at Electrontech China2024 to welcome the semiconductor boom, Cytech Systems presents a gorgeous transformation blueprint

May 23, 2024

"Recovery" is the common expectation of all semiconductor field practitioners for 2024. Many research institutions did give a positive reply at the beginning of the year. Although everyone's predictions were different, there was basically a consensus on achieving double-digit growth. Taking WSTS as an example, it predicts that the global semiconductor market will achieve approximately 13% growth in 2024.

"The term 'cyclical recovery' should be more in line with the market changes in 2024. For example, the global electric vehicle market has been soaring and may temporarily slow down. At the same time, the rapid iteration of large AI models is reshaping servers with unprecedented intensity market, and subsequently awakened a new wave of demand in the field of smartphones and notebook computers." Alice, general manager of Cytech Systems, an industry-leading electronic component distributor, recently participated in Electrontech China2024 and analyzed the underlying driving force of this round of market recovery.

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Cytech Systems debuted at Electrontech China2024 in Hall B3-Booth B323

Electrontech China2024, as one of the important windows to see the changes in the semiconductor industry, is not only a bright stage for technological innovation and product competition, but also a weathervane that indicates the future direction of the industry.For Cytech Systems, participating in this exhibition means, on the one hand, presenting the company's products and innovative solutions to the industry, and on the other hand, it is also a valuable opportunity to have in-depth discussions with upstream and downstream companies on how to seize opportunities, lead trends, and drive innovation in the new market cycle.

Cytech Systems participated in the exhibition for the first time, Insight into trends and seizing opportunities are the internal driving force

It is reported that this is the first time that Cytech Systems has participated in the exhibition. The internal driving force of Cytech Systems' participation in the exhibition stems from the desire to grasp trends and opportunities.

This exhibition attracted professionals from industrial electronics, automotive electronics, medical electronics, Internet of Things, communications and other fields. 400+ exhibitors gathered in the 20,000㎡+ exhibition area, attracting 20,000+ professional visitors. "Participating in this exhibition can really help us gain in-depth insights into the development trends of the electronics industry in the Midwest, the country, and the world, further expand market opportunities, increase industry exchanges, and further enhance our brand awareness," Alice added.

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Alice, General Manager of Cytech Systems

AI empowers growth in multiple industries, how to seize distribution opportunities?

Although it has recovered from the trough, the semiconductor distribution market in 2024 still faces both challenges and opportunities. Such as supply chain fluctuations: Due to the cyclical nature of the semiconductor industry, the distribution market in 2024 may continue to experience supply and demand fluctuations. Alice said, "Customer demand has increased since 2024. The end and semiconductor supply chain have continued to reduce inventories and achieved remarkable results. However, due to the impact of economic instability, the market has been fragmented. At the same time, the source end, such as raw material and processing costs, has begun to show an upward trend, which may occur in the future. Out-of-stock issues in certain areas.”

Another example is the increase in market concentration: As the concentration of the electronic components distribution market may further increase, large distributors will expand their market share through mergers and acquisitions, forming a "strong will always be strong" pattern; another example is technology-driven: AI and high performance The growing demand for computing will drive innovation in the semiconductor industry and bring new growth opportunities to the distribution market.

The rapid advancement of large models and generative artificial intelligence technology is profoundly affecting all walks of life with an unstoppable trend, from automobiles, consumer electronics to medical health, industrial control, etc., all showing a strong demand for AI intelligent integration. This trend in turn promotes the development of the communications market.

“In the semiconductor market, since the iterative development of AI is inseparable from the collection, calculation, training and transmission requirements of massive data, this will further promote the iterative upgrade of computing power and networks, and drive the various types of chips for AI data centers and edge high-speed computing, such as CPU, GPU, FPGA, ASIC, HBM memory, 3D NAND, DDR5, etc., will be opportunities to create real technologies,” Alice emphasized, “The key is how to grasp it!”

Keeping up with market changes, Cytech Systems is actively expanding its agent lines, such as Renesas, WeEn, SGMICRO and other product lines. At the same time, Cytech Systems hopes to develop more cooperation opportunities in the fields of communications, industrial control, medical electronics, and bring more innovation, efficiency and value to the corresponding industries.

Self-reform, how to stand out in the current distribution changes?

"Technology-based distribution capabilities" have become a more certain path. Cytech Systems no longer emphasizes that are an independent distributor. "The current changing market environment requires us to build ourselves into a comprehensive service platform for component application innovation and modern supply chain that integrates electronic component distribution, technology chain services, supply chain coordination supporting services and data services," Alice emphasized.

For Cytech Systems, the improvement and reflection of comprehensive service capabilities urgently need to be made known to the industry through multiple aspects. While continuously enriching agency lines, Cytech Systems has also added a new solution design business supported by original manufacturers since April this year. At a time when the distribution business lacks stability, expanding the agency line and developing Design-In services at the same time can further stabilize the relationship with the original factory and gain active support.

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Cytech Systems participated in Electrontech China2024 with some agent line products

"Customer-centered, empowering customers in all aspects" has always been the purpose of Cytech Systems. This participation in Electrontech China2024 also further demonstrated to the industry Cytech Systems’ continuous iteration and self-innovation of operating model over the years.

In 2022, Cytech Systems added a domestic agent line. With the increasing number of international and domestic agent lines, Cytech Systems also added a program design business section, committed to providing customers with personalized solutions. In the process of continuously expanding local brand channels and distribution channels, we will further improve the product quality, service level and customer experience, thereby achieving Cytech Systems' sustainable development and co-creation of value with customers.

As an electronics distributor based in Asia and radiating around the world, the implementation of global strategy is also the top priority for Cytech Systems to respond to market changes. Under the background of insisting on focusing on both domestic and foreign markets, Cytech Systems hopes to expand its business to East Asia, Southeast Asia and other markets in the next step. It plans to set up offices in many countries or regions around the world in the future to provide comprehensive services closer to local customers and support, thereby strengthening Cytech Systems' global operations and service capabilities.

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