Samsung Electronics reportedly plans to deliver its memory and MCP (multi-chip packaging) parts directly to some major clients in Taiwan including HTC and Transcend Information, while withdrawing the sales agent rights for those products from its local distribution partners, according to industry sources.
Samsung's major sales agents in Taiwan include WPG Holdings, Supreme Electronics and Coasia Microelectronics. Coasia is a joint venture set up by Samsung's design center in Taiwan, Yosun Industrial and Supreme.
Supreme has been distributing DRAM and NAND flash products to Transcend on behalf of Samsung, with shipments to the memory module maker contributing to 10% of its total revenues, revealed the sources.
The move by Samsung, if realized, may not have a strong impact on Supreme, since the ratio of Samsung products to its overall sales is not high, commented the sources.
However, the impact on Coasia would be far more significant, given sales of Samsung's products including Super AMOLED panels to HTC currently account for over 70% of Coasia's total revenues, said the sources.
In response, Coasia has posted a filing with the Taiwan Stock Exchange (TSE), stating that it just signed a contract with Samsung in March 2012 for the distribution of Samsung's semiconductor parts in Taiwan, and that Samsung has not discussed with it any rearrangement of distribution rights. WPG and Supreme have also denied the market rumors.
But Samsung has in the past taken back distribution rights from partners, noted the sources.. Samsung put Acer and Asustek Computer under direct accounts after WPG merged with Yosun in late 2010. |