Only a Few Distributors Left TI Further Thins out Channel

At the end of 2020, Texas Instruments plans to completely end its cooperation with Avnet. The Asian distributors WPG and WT Micro are also affected by the consolidation of the channel.

For customers in EMEA, this means that from 2021 only Arrow will remain in the distribution network of large volume distributors. Customers will continue to be able to cover fast demand in smaller quantities e.g. via Digi-Key and Mouser. "We respect TI's decision," says an Avnet spokesman. They will continue to work together during the transition period, Avnet continues.

The consolidation of TI's distribution network has been underway for some time: Successively, worldwide distributor contracts were terminated and remaining channel partners were sorted in as fulfillment providers rather than design-in partners. This had an impact on the distributors' margins. Distributor fulfillment partners function as extended workbenches in logistics, manage inventory and deliver goods, but are not active as "demand creation engines" in the market. TI wants to take on this role itself to a large extent. TI therefore focuses on direct business with its customers and therefore requires fewer channel partners.

TI is not alone in consolidating its distribution channels. In the last two or three years, many component manufacturers have thinned out their distribution network, especially for the volume business, or have turned to singular distribution partners. Not only the distributors, but also the customers are not happy about how Markt&Technik found out in various discussions and round tables. Anyone who is dependent on singular purchasing structures