At the beginning of 2012, the Shenzhen Huaqiang North Business District (hereinafter referred to as “Huaqiang North”) burst into the cold, and many businesses began to withdraw their cabinets from the cold.

“In the past, when the business was good, the counter was fried, and the tea drink fee was the highest at 600,000. Now the best place is only TWD 300,000. There is no market for the price.” Financial Daily reporter said. The “drinking tea” in his mouth is the transfer fee for counters and shops.

At the end of 2011, the vacancy rate of counters and rooms in Huaqiangbei business district was 8%, which is only a conservative estimate in the industry. "More than 10% is there," said the distributor.

Recently, the Huaqiang North China Electronics Market Price Index released in 2011, in addition to a small peak in July, the annual chain index showed a downward trend. This index is the only comprehensive electronic market price index in China and is an important economic indicator that reflects the comprehensive changes in the market of Huaqiangbei electronic components and consumer electronics products.

Industry analysts said that in 2011, Huaqiang North electronic components industry, the market was sluggish, the peak season is not prosperous, the end of the year is still not seen the trend of warming. At present, the main area for operating electronic components in China is Huaqiangbei, which is also the epitome of China's electronic components industry.

A number of industry insiders told this reporter that in 2012 the electronic components industry entered the destocking cycle.

The “winter” came when an unnamed annual sales volume was in the tens of millions of company CEOs. In 2011, due to too much pressure, the turnover was not working, and the capital chain was broken. Now the company’s assets have been cleared.

Large distributors are still like this. It is even more difficult for small-scale, independent distributors.

A sales person from Shenzhen Haotehua Semiconductor Co., Ltd. told this newspaper that since May 2011, the market remained sluggish, and sales at the end of 2011 were 50% lower than the same period of previous years. As market competition has intensified, distributors have been pushing down prices and industry profits have generally declined.

The slump in the industry also “tired” the courier companies that rely on Huaqiangbei’s strong incoming and outgoing shipments. A courier delivered by SF Express told this reporter that in 2011 his purchase volume was reduced by almost one-third.

Wu Bo, deputy secretary-general of the Shenzhen Semiconductor Applications Alliance, revealed to the newspaper that 95% of electronic component distributors in Huaqiangbei had a decline in profits in 2011 compared with 2010, and their profit decreased by 20% to 30% over the same period. Many distributions The quotient begins to clear inventory at all costs. "Atmel's chip purchase price can reach 34 yuan at the highest, and now it will be shipped at 3 yuan. The high diving rate makes many distributors miserable."

In 2011, the electronic component industry faced not only the impact of the debt crisis in Europe and the United States, but also the impact of the Japanese earthquake and floods in Thailand on the electronic components market.

Wu Bo explained that during the earthquake in Japan, the prices of Japanese electronic components such as Toshiba and Sony generally rose. However, due to the disruption of the Japanese supply chain, independent distributors of Huaqiangbei were seriously out of stock, causing buyers of downstream terminals to switch to Korean or Taiwanese brands. Instead, distributors have lost many customers. At the same time, flooding occurred in Thailand. Seagate, Western Digital and other hard disk manufacturers in Thailand were also affected. Many electronic components factories gradually resumed production at the end of November. As a result, Huaqiangbei's hard disk market caused price increases due to shortage of goods. As a result, there were The distributors scrambled hard drives for tens of millions, while others did not seize the opportunity.

According to the inventory tracking report of IHSiSuppi, the inventory of semiconductor suppliers decreased in the third quarter of 2011 and ended the seven consecutive quarters of increase since 2009. In the third quarter, the number of semiconductor inventory days (DOI) was 81 days, and the second quarter was It's 83 days.

However, the negative impact of the debt crisis in Europe and the United States is difficult to resist, and producers expect the market to decline again. Lu Zhi, general manager of South China Business Unit of Intertek Technology Co., Ltd., told this reporter that the upstream source factories of some brands represented by the company have reduced their market expectations for 2012, and may shut down some production lines and partially lay off employees.

Some distributors believe that the impact of the real estate purchase restriction policies introduced in various regions on the home appliances and other industries has gradually emerged, and the downturn in the home appliance industry has also been transmitted to the electronic components industry.

Seeking opportunities in high-end areas The cold winter of the electronic components industry of Huaqiangbei has already come. Many independent distributors and professional distributors are more concerned about how to survive the winter. Several large distributors with deep internal expertise stated that it is an absolute principle to get involved in high-end electronic components, such as industries or organizations that rely on military investment, university research, high-speed rail, etc., to rely on national investment.

Chen Xuguang, general manager of Shenzhen Chaoguang Technology Co., Ltd., told this newspaper that the key to survival is whether the company's main product structure is reasonable. For example, in 2011, 3C consumer electronics, such as smart phones and tablet computers, were seriously affected. There are still many opportunities for demand for electronic components in industries such as energy-saving industries, industrial controls, and security facilities.

In June and July 2011, Zhu Junshan, general manager of Shenzhen Sino-Italian Electronic Technology Co., Ltd., saw heavy consumer electronics components being pressed heavily. He decisively adjusted the company's product structure and switched to the military, LED, new energy, and high-speed railways. However, for medium and small electronic component distributors, adjusting the product structure in the short term is not easy.

According to industry analysts, in 2012, the electronic components industry will start to go low, the inflection point will likely occur in the second quarter, and damaged industrial chains such as Japan and Thailand will also be restored, and the market will gradually pick up afterwards.

Wu Bo also said that in the first quarter of 2012, it will start to go low. After the Spring Festival, the market will not have too strong demand. The source plant will reduce production. Clearance by distributors will lead to inventory decline. In June and July 2012, it will gradually return to normal levels. After this winter, the 3C industry will still be the mainstream of the electronic components market.