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Grasp the pulse of the times to continue to write extraordinary, help the components industry to flourish

Grasp the pulse of the times to continue to write extraordinary, help the components industry to flourish

  • Categories:Company News
  • Time of issue:2022-04-08 15:53
  • Views:

(Summary description)In the 1990s, China's components industry just started, when not many overseas chip manufacturers entered our market, the supply chain is not sound, the industry urgently needs to introduce advanced chips. Among many famous chip manufacturers, Texas Instruments (TI) developed and manufactured digital signal processors and analog devices all over the world, this old chip original factory did not officially enter China until 1996, and the person behind the scenes who promoted TI's strategic decision to develop China is the protagonist of this issue of "Cover Person Interview" - Tecnon shares Mr. Yuan Yi, General Manager of Tecnon and President of Bosda Technology.

Grasp the pulse of the times to continue to write extraordinary, help the components industry to flourish

(Summary description)In the 1990s, China's components industry just started, when not many overseas chip manufacturers entered our market, the supply chain is not sound, the industry urgently needs to introduce advanced chips. Among many famous chip manufacturers, Texas Instruments (TI) developed and manufactured digital signal processors and analog devices all over the world, this old chip original factory did not officially enter China until 1996, and the person behind the scenes who promoted TI's strategic decision to develop China is the protagonist of this issue of "Cover Person Interview" - Tecnon shares Mr. Yuan Yi, General Manager of Tecnon and President of Bosda Technology.

  • Categories:Company News
  • Time of issue:2022-04-08 15:53
  • Views:
Information

In the 90s of last century, China's component industry was just starting, when there were not many overseas chip manufacturers entering the Chinese market, the supply chain was not perfect, and the industry urgently needed to introduce advanced chips. Among many well-known chip manufacturers, Texas Instruments (TI) R & D and manufacture of digital signal processors and analog devices all over the world, this old chip original factory did not officially enter China until 1996, the behind-the-scenes hero to promote TI's development of China's strategic decision is the protagonist of this issue of "Cover Person Interview" - Mr. Yuan Yi, General Manager of Tecnon Co., Ltd. and President of Bostar Technology.

1 Xinwen Road

As an evergreen in the electronics industry, Mr. Yuan Yi's experience is legendary, from returning from studying abroad in the early days, to helping TI enter China, leading the United States Broadcom to develop the Chinese market, to helping Chinese enterprises successfully achieve internationalization with excellent management experience, and later playing a more important role in the component supply chain to promote the rapid and healthy development of the market, Mr. Yuan Yi with keen insight, accurately grasp the pulse of technology and market development, to help China's component industry flourish. At present, Mr. Yuan Yi is still actively exploring market development and has become an important leader in the component distribution industry. Let's take a look at this pioneer in the semiconductor industry and a leader in China's electronic components distribution industry.

  

 

Photo: General Manager of Tecnon AG and President of Bostar Technology

Have the courage to challenge and pursue value creation and achievement

ask

You graduated from Shanghai Jiao Tong University, a famous Chinese university, and later studied in the United States for graduate school, and recommended you to work in a large American company as an excellent graduate student.

answer

University is like an ocean of knowledge, and it is a small society, and my feeling is that I have benefited a lot, not only learned a lot of theoretical knowledge, but also began to learn how to do things and how to behave. The biggest feeling of entering a prestigious school is that there are many smart and excellent people in this world, and they can't get ahead without hard work, or even survive, so they must work harder to learn their skills. After working for a period of time, although I made a lot of progress and won the National Scientific and Technological Achievement Award, when I read a book called "The Story of Silicon Valley", I was deeply touched by the entrepreneurial story of American high-tech enterprises described in the book, and felt that it was necessary to go to the United States for further study. At the end of the eighties, the competition to study abroad was fierce, especially those studying engineering, they had to get a scholarship to have the opportunity to get a visa to the United States. So at that time, there were very few people studying aesthetic engineering. Only a few outstanding graduates from prestigious universities have received scholarships to go to the United States for graduate school.

The biggest experience and benefit of graduate school in the United States is that the learning there is closely linked to the enterprise, and graduate students will do practical projects of enterprises, such as TI, AT&T and General Motors when I was involved in graduate school, which not only consolidated the theoretical knowledge of graduate students, but also received very good training in application ability and hands-on ability. For me, before I graduated, I entered the General Motors Research Institute under the strong recommendation of my professor, and immediately took over the project, and obtained several US patents. It laid a good foundation for entering Texas Instruments (TI) and Broadcom in the United States.

ask

It has successively brought TI and Broadcom into the Chinese market; Expand TCL's communications business, including the acquisition of Alcatel in France, to the international market; Leading Ketong and Bostar Technology (hereinafter referred to as Bostar) into the TOP20 local component distributors, your series of breakthroughs from 0 to 1 in the electronics industry are commendable, can you share how you maintain your enterprising enthusiasm in the continuous transformation?

answer

It can be said that I am a person who is not satisfied with the status quo, pursues life value and sense of achievement, and I pursue the process of creating value and creating achievements. The most important thing is that this era has finally given us the opportunity to manifest and develop my outlook on life and passion.

ask

The industry praises you as a witness and pioneer in the semiconductor field in China and the United States, an evergreen tree in semiconductor distribution, and an "invisible boss" in semiconductor distribution.

answer

There is an old saying in China, called "the times make heroes", I don't think I am a hero, but that era is the era when China's electronics industry began to start developing, domestic semiconductors are almost blank, and someone needs to introduce advanced semiconductor technology and products from the United States into China. I just did the right thing at the right time.

In the early nineties, China's electronics industry began to develop, I spent ten months conducting market research and making business plans, persuading TI to set up an office in China, recruit people, and develop the Chinese market. In 2000, I did the same for Broadcom in the United States, which enabled Broadcom to quickly open the market in China and grow rapidly. I have witnessed the rapid development of Chinese electronics companies such as Huawei, ZTE, Datang, TCL, Bird and Konka, Changhong.

In the development of China's electronics industry, electronic component agents and channel providers have played a huge role. At first, they mainly included agents and distributors in Taiwan and Hong Kong. I realized the advantages and importance of local agents in China, so I actively promoted localization. Finally, he joined the local agent industry in China and personally built an excellent and rapidly developing local agency company (Bostar). Due to my deep understanding of the entire upstream and downstream value chain, in a relatively short period of time, the agent enterprises I manage have developed healthily and rapidly, making small contributions to China's electronics industry and achieving a little achievement.

Consolidate the business foundation and comprehensively layout and seek growth

ask

Bostar merged into Tecnon shares in 2020, what are the benefits of this merger so far?

answer

Bostar Technology and Tecnon shares merged into one to become a listed company, which has a good improvement for both parties in terms of capital. Since it is a public company, the company can carry out capital guarantees, large-scale financing and improve creditworthiness. Hiring employees is also more attractive, so this merger should be positive and successful. It laid the foundation for large-scale development in the future.

  

 

Note: Bostar Technology signed a contract with Tecnon shares

ask

According to the half-year report of Tecnon, Bostar's revenue in the first half of 2021 reached about 22.<> billion yuan, and its performance rose against the trend under the influence of the epidemic and the shortage of components.

answer

2021 is the most volatile year in the entire Chinese component market than before. In addition to continuing to invest in the smart phone market to strengthen cooperation with customers to ensure stocking and supply, Bostar has also made strategic investments in consumer, security, and automotive, added more product lines, strengthened team building, signed more customers, and achieved obvious results.

ask

Bostar plans to strengthen its market position in automotive, mobile phones, security, consumer electronics and other fields, how to continue to maintain high growth in 2022?

answer

In 2022, Bostar will vigorously build a team to develop the above markets, including marketing personnel, sales personnel and FAE personnel, especially the FAE team. The company will also sign more product lines suitable for these markets, with characteristics and advantages. Bostar will continue to do a good job in all aspects step by step and develop the above markets.

  

 

Photo: Group photo of Bostar Technology Co., Ltd. moving to a new location

ask

You once mentioned that "layout is the key", focusing on grasping the market, customers, and upstream, in terms of market, can you introduce how Bostar plans the automotive market?

answer

In recent years, the development of the automobile market is in full swing, very rapid, especially the development of new energy vehicles, the demand for chips exceeds people's expectations. Bostar has witnessed the vigorous development of this market in the past two years, and our AKM audio processing chips have been widely adopted by many domestic automotive customers, and the demand is increasing. In 2022, we will improve the layout of the automotive electronics product line around automotive audio systems, video security systems, MCUs and other products. Bostar has begun to cooperate with many key domestic automotive customers, such as: BYD, Xpeng, Lili, Hangsheng, Yuanfeng, Huayang, Hikang, Guangzhou Shiyuan, etc.

 

The scale development of agents ushered in opportunities

ask

According to your observations, more and more component agents are listed, merged with listed companies, or entered the upstream of the industrial chain, can you talk about the background and reasons for these changes in component agents?

answer

Component agents should do a good job and become stronger, and scale is very important. Reduce service costs, increase value to upstream and downstream, and contract more product lines through scale. And to do large-scale there is a constant demand for funds, so whether the enterprise is listed by itself or merged with a listed company, it has essential help for financing and making the enterprise bigger. In addition, after agents enter the upstream, their control over products and channels is greatly increased.

For listed companies, it will also greatly improve the recognition and price-earnings ratio of component agents in the capital market, and play a supporting role in the distribution business.

ask

Is the flow of capital to the semiconductor industry an accidental phenomenon under the shortage of cores, or is it a long-term and inevitable choice of capital under the guidance of policy? What opportunities will component dealers get?

answer

I think, first of all, this is the rapid growth of the electronics market that has led to the rapid growth of the semiconductor industry, and this growth will continue for a long time. Capital is always looking for industries to grow, so investing in semiconductors is a natural phenomenon. Since China's semiconductor market is huge and will continue to grow in the next two decades, capital will continue to look for investment opportunities in the semiconductor industry. Since the cutting-edge semiconductor chip technology is in the hands of Europe, the United States and the Japanese, China must vigorously support the development of semiconductor component enterprises. Therefore, more and more local semiconductor companies will grow, so that local agents will definitely have more opportunities. Because China's local semiconductor companies are well aware that their growth is more dependent on the help of local agents. Since there are many semiconductor chip companies in China, component agents should look for domestic semiconductor companies with good technology and strong teams to cooperate.

ask

What do local component agents need to strengthen if they want to become bigger and stronger, and even catch up with large international catalog distributors?

answer

Local component agents have a natural advantage over international catalog agents, and the time and place are favorable. It is reflected in better understanding of market demand, closer relationship with customers, and high service efficiency. And local agents pay more attention to technical support. The lack of local agents is that the product line is smaller than that of international distributors, and there are no international agents in terms of funds. As domestic excellent agents grow and go public, local component agents will definitely have the opportunity to become bigger and stronger.

  

Connect upstream and downstream to help the development of local chip manufacturers

 

ask

Compared with when you first entered the component distribution industry, what changes have occurred in the current domestic component distribution industry in terms of market structure, market size, business environment and other aspects?

answer

When I returned to China in 1996 to help TI develop the domestic electronics market, the domestic market was just getting started. The only regular agents are AVENT, Arrow, and agents in Taiwan and Hong Kong. The market is small, but it is growing rapidly. At that time, electronic components were all imported, and the domestic semiconductor business was almost zero. The import of semiconductor chips has increased from tens of billions and hundreds of billions in the past, to one trillion a few years ago, and exceeded two trillion in the past two years.

At the beginning, there were relatively few formal agents in China and the scale was small, and now there are dozens of local agents in China with a scale of more than one billion. In addition, there are now more and more domestic local semiconductor chip companies, and many of them have a considerable scale. Excellent domestic agents are growing rapidly.

ask

Chip localization is considered to be an opportunity for domestic enterprises, from the perspective of Bostar's business, what is the situation of chip localization? What advice do you have for domestic enterprises?

  

 

Illustration: Yuan Yi, president of Bostar Technology, delivered a speech at the annual meeting of the Guangdong Jiangsu Chamber of Commerce Electronics Association

answer

Due to the growth of domestic demand for electronic components, foreign component manufacturers have been unable to meet the growth of domestic demand, so there are many opportunities, especially in the past two years, the intensification of scientific and technological competition, so that domestic enterprises began to recognize the importance of cultivating domestic chips, providing opportunities for domestic manufacturers. Bostar has attached great importance to cooperation with domestic manufacturers in the past two years, and we have made a good layout in mobile phones, consumer electronics, especially in the automotive market, whether it is audio, video, MCU chips, and domestic manufacturers have begun good cooperation.

Compared with overseas chip companies, domestic chip companies are still in the initial stage, they still need agents like Bostar, because the agent's understanding of customer needs can be effectively transmitted to the original factory, and the cooperation between domestic chip suppliers and agents is guaranteed for future growth. It is recommended that suppliers and excellent agents carry out full and close cooperation, accurately understand market demand, control product quality, ensure good production capacity, make full use of the sales team and FAE team of excellent agents, and carry out product promotion and technical support on the client.

ask

What are you doing about the uncertainty of upstream wafer capacity and the resulting risk of extended lead times and price volatility?

answer

For agents, to help manufacturers accurately understand market demand and market changes, the uncertainty of upstream production capacity mainly comes from large changes in the market. I believe that the market will be relatively stable and predictable in 2022 or the next 2-3 years, and it will be able to place orders and stock up more accurately.

ask

Component agents create value for the original factory, in your judgment, what value can the agent's data business capabilities provide to the original manufacturer? Can you share your experience in maintaining a good relationship with the original manufacturer?

answer

As an excellent component agent, should have the ability to understand the market, grasp the market, product demand forecast is very important for agents and suppliers, because chip manufacturers and agents need to stock the market and customers, so do a good job of demand forecasting can avoid supply problems. The value of the distributor itself is the basis for maintaining a good relationship with the original manufacturer, including market development, relationship with customers at all levels, project control and management ability, technical support ability, and financial ability.

ask

What advice and advice do you have for current students and young people new to the electronics industry?

answer

China is in a booming era, especially the development of the electronics industry is exciting. Whether it is the research and development of semiconductor chips or the application of semiconductor chips, there are unprecedented employment opportunities. For school students and young people who are new to the electronics industry, please study and train the basic skills hard, work hard, this industry has great prospects. Women are afraid of marrying the wrong man, men are afraid of entering the wrong line, for excellent and motivated young people, choosing the electronics industry is a correct decision.

  

 

epilogue

In the rapidly changing times, individuals may be insignificant to the industry, but it is precisely the convergence of dripping water that can achieve the vastness of the sea. Only by facing the wind can we break the waves, and forge ahead in the tide of the times, Mr. Yuan Yi is the one who stands at the forefront of the times, leading the industry to roll forward. It is precisely because of countless entrepreneurs like Mr. Yuan Yi that the component industry has developed vigorously.

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