Introduction: A Major Shakeup in the Electronics Supply Chain

In June 2025, the global electronics industry witnessed two seismic shifts:

Chip One Stop (Shenzhen) Ltd., a subsidiary of Arrow Electronics, announced liquidation.

WPG Holdings, Asia's largest semiconductor distributor, initiated a large-scale consolidation.

These events mark a pivotal point in the evolution of global electronics sourcing.

Chip One Stop Liquidation: An Unexpected Exit

Founded in 2001 in Japan, Chip One Stop was a leading catalog-based electronic components distributor. The Shenzhen branch, active since 2015, supported over 3,000 manufacturers and maintained deep partnerships with brands like: Murata, Omron, Kyocera, ADI, NXP, Microchip, ROHM, Renesas.

On June 20, 2025, the company issued an official liquidation notice to creditors in China. The move sparked concern across Asia's OEM and EMS networks.

Arrow Electronics Under Pressure

The parent company, Arrow Electronics, is facing its own challenges:

Q1 2025 revenue down 1.6% YoY

Core components business dropped 8%

European revenue plunged 16.8%

Despite past efforts to shift from pure distribution to “distribution + engineering services,” Arrow has struggled amid declining automotive demand and memory chip inventory pressure.

WPG's Strategic Reorganization

In contrast, WPG Holdings announced a bold merger of its subsidiaries:

Yosun, Panjee, and Supreme will merge into Edgecore Group

Together with WP Group, WPG will operate a “dual-engine” model starting in 2026

This move aims to:

Optimize scale and resource allocation

Cut operational cost

Strengthen competitiveness in global markets

As CFO Yuan Xingwen said, "One strong climber is faster than three small ones climbing separately."

Industry Implications: What Comes Next?

These events reflect larger trends in the global electronics distribution industry:

Trend                                                                                       Description

Shift from catalog sales                               More demand-driven, real-time sourcing 

Geopolitical pressure                                   US-China tech restrictions, EU trade shifts 

Role of distributors evolving                        Value-added services like logistics, inventory, design-in support 

Rise of emerging markets                            Southeast Asia and Latin America gaining importance 

What This Means for OEMs, EMS & Sourcing Teams

With key players exiting or reshaping, sourcing teams are left with urgent questions:

1. Who can provide stable, traceable original components?

2. How to prevent supply chain disruption in a volatile market?

3. Where to find a partner that combines speed, flexibility, and engineering support?

AXTEK: A Flexible and Trusted Alternative

At AXTEK Electronic Co., Limited, we believe the future belongs to agile, service-driven distributors.

We support OEM, EMS, and trading partners with:

√ Original & authentic ICs from brands like ST, TI, ADI, NXP, HOLTEK, and more

√ Spot and scheduled supply

√ BOM consolidation, long lead-time alternatives

√ Technical solution support (power, touch sensing, MCUs)

As the industry shifts, AXTEK remains stable, responsive, and ready.

Need help navigating this change? Contact us today.