UK-based IC distributor Premier Farnell will focus to push its sales to the R&D testing and backend maintenance segments in order to differentiate itself from Taiwan-based rivals such as WPG Holdings, WT Microelectronics and Yosun Industrial which have been pushing sales to manufacturers who need parts and components in large quantity, according Edmond Chu, managing director of Greater China, Premier Farnell.

Demand for IC parts from the R&D and maintenance segments is set in relatively small quantities and yet with relatively high gross margins, said Chu, noting that Premier Farnell also provides prompt delivery and technical support services at degrees far beyond other IC distributors.

Premier Farnell can deliver IC parts ordered by design engineers in two working days compared to 30-40 days for large-volume orders, Chu stressed.

Focusing on delivering the best purchasing experience to its clients, Premier Farnell has a stockpile of over 400,000 items in more than 3,500 product categories. For clients in Asia, the company also maintains a distribution center in Singapore to fulfill its commitment to deliver goods in two working days, Chu stated.

Sales in Asia and Eastern Europe currently contribute 10% to Premier Farnell's total sales, and the company aims to push the ratio to 30% in 2012, Chu said. In addition, sales in the Asia Pacific region alone grew by 47% on year in the first half of 2010, which was higher than the company's overall growth, Chu noted.

In China, a number of industries are moving to the development of high value-added products and the development of its aviation and aerospace industries also looks promising, Chu commented, noting that a fast growing R&D market in China is bound to bring more opportunity for Premier Farnell.

Edmond Chu, managing director of Greater China, Premier Farnell
Photo: Nancy Cheng, Digitimes, October 2010