Allchips, the intelligent electronic components supply chain service platform, announced that they have finished the A Round Investment with 10 million. This round of financing was leaded by Langke Investment, and Lanhai Zhongli ,Reading Capital followed. The investment of this round will be used in developing intelligent supply chain and enlarging market share.
Allchips is an electronic components B2B service platform specialized in intelligent supply chain management. On Mar. 2016, the platform came online, and won the Angel round financing from Reading Capital in June at the same year. Next year, in July, Allchips annunced that they have finished the Pre-A financing from Langhai. Now here again, after half a year, Allchips was invested by a new round of investment.
New Chances of Electronic Components Industry
“The annual turnovers of some traditional foreign distributors, like Arrow, Avnet and Future, is over 100 Billion RMB. However, the biggest traditional distributor in China only get the annual sales around 15 billion RMB. Because Chinese semiconductor industry begins very late, and we did not get the first chance to enjoy traditional distributors bonus,” Mr. Li Liuqi said.
“There would be more investments swarming into the electronic components industries in 2018, while for start-up companies, I do not think they have any more chances. I believe there would be some unicorns who owns over 10 billion of market value born in this industry within 5 years.”
Mr. Li Liuqi, has been working in electronic components industry for over 10 years, since after graduates from university in 2004. He noticed not only the distance between domestic and overseas semiconductor industry, but also the tendency that China semiconductors are rising. Along with the support of Chinese government, Chinese manufacturers have been able to produce high quality components. However, in market and circulation, the traditional distributor models cannot meet the new trend and demand any more. Because of this, in 2015, Mr. Li Liuqi, and Wang Xiaojiang, decided to set up Allchips, help solve the real purchase demand of small and medium-sized producers.
While communicating with these small and medium-sized producers, Allchips found that in one hand, they are lacking of basic purchasing experience, and do not have the skill to analysis information from different suppliers. In the other hand, 90s’ as the main practitioners in this industry. They do not want to communicate with suppliers by phone, email or face to face meeting. They are eager to manager their work by a more effective, standard, visual, and intelligent way. And this is what Allchips is doing.
Efficiency & Open
The innovation of Allchips shows in the two points: Improve efficiency and be open.
The main customers of Allchips the platform are: the project department of large and medium-sized manufacturers, terminal service providers and terminal integrator. In order to improve the purchasing efficiency of these clients, Allchips launched the BOM tool: BOM Steward, on Mar. 2017. This BOM Steward mainly solves the problems of hardware engineers and purchasers. Even though when the BOM list included incomplete part number or values, BOM Steward could also import recommend part number and the related quotation. This result could help improve efficiency, also reduce the potential risks. To enhance customer stickiness, this BOM tool is free temporally.
Be Open is the business pattern of Allchips. Currently, the main pattern of Allchips including two ways: First, Proprietary Trading, to sale Allchips stock from original factories and A-level agents directly. Second, Invite In, to invite the original factories and A-Level agents open e-shops in Allchips platform. Mr Li Liuqi says, at present the Allchips team is focus on improving proprietary trading abilities. Invite In will help increase the trading activities of the platform.
In order to improve the proprietary trading ability, Allchips will build their own intelligent supply chains in 2018. This will collect the searching, quotation, comparing and deliver together. And then change the traditional book-entry management pattern into a global task management pattern. Also turn the electronic components online trading into a internet Amazon pattern. Allchips has already build storehouse in Shenzhen and Hong Kong. Next step, they will put intelligent supply chain management of South China into priority.
Allchips is an electronic components service platform for original manufacturers and authorized agents. Allchips supplies more than 10 million products from 1,000+ suppliers and offers its Intelligent BOM service to end users, like OEM, EMS, IDH, SMT, PCB, PCBA, ODM.
Allchips only cooperates with electronic component manufactures and their authorized agents. They promise that: “No fake components, No refurbished components, and Genuine components only!”