Strategic cooperation, win-win cooperation: Avnet and FAW-Volkswagen sign a strategic partnership framework agreement

On January 10, 2022, the FAW-Volkswagen 2022 Supplier Partner Conference, themed "Innovation, Wisdom, Connecting the Future," was grandly held at the Hongqi Hall in Changchun. Avnet was invited to attend the event and, at a special forum, signed a strategic partnership framework agreement with FAW-Volkswagen. The agreement aims to establish a long-term, comprehensive strategic partnership, fully leveraging each company's strategic resources, high-quality channels, and core strengths to jointly promote R&D and breakthroughs in the automotive industry.

Avnet Electronics (Shanghai) Co., Ltd. and FAW-Volkswagen signed a strategic cooperation framework agreement

Under the agreement, Avnet will leverage its deep technical expertise and resource advantages to provide supply support for FAW-Volkswagen's automotive technology R&D and product iteration, thereby strengthening FAW-Volkswagen's core competitiveness and market influence in the automotive sector. This agreement will also foster the formation of a sound, sustainable, and long-term mechanism, enabling Avnet and FAW-Volkswagen to complement each other's strengths, share resources, and deepen cooperation, laying a solid foundation for a long-term, stable partnership.

Left: Ma Liewei, General Manager of Sales at Avnet Electronics (Shanghai) Co., Ltd.; Right: Zhang Ming, Purchasing Director at FAW-Volkswagen

2021 is destined to be an extraordinary year. Driven by the ongoing impact of the COVID-19 pandemic, the chip shortage has become the biggest challenge hindering the sustainable development of the global automotive industry, directly impacting the scale of automobile production and sales. At the same time, the concept of the "four modernizations" of automobiles and the dual-carbon policy continue to gain popularity, enriching the connotation and extension of automobiles. The automotive industry is entering a new stage of breakthrough and transformation. Against this backdrop, ensuring a stable supply of chips and building a more secure, intelligent, and controllable supply chain system are urgent issues that need to be addressed.

To this end, Avnet is continuously strengthening its collaboration with domestic chip manufacturers to ensure a stable supply of automotive-grade products. For example, Silergy, Core Semiconductor, BYD LED, and other manufacturers have already obtained automotive-grade products certified by the China Association of Automobile Manufacturers. Other suppliers are also continuously developing automotive-grade products.

Ms. Dong Hua, Vice President of Sales and Supplier Management at Avnet China, said: "Avnet is honored and proud to sign a strategic cooperation framework agreement with FAW-Volkswagen. Avnet has been operating in the Chinese automotive market for over a decade. Our continuous investment in personnel and technology, coupled with our deep roots in the Chinese automotive industry, has enabled us to secure extensive resource support from numerous OEMs and provide first-hand access to leading technologies and products. Avnet, established for 101 years, is a highly trustworthy company. We serve a diverse automotive client base in China, encompassing local OEMs, local Tier 1s, local IDHs, and domestic software companies. Our industry clients include intelligent driving, domain control, smart gateways, and battery management systems. Our comprehensive capabilities and competitiveness stem from our robust corporate governance, sound capital management, a supply chain management system that adheres to integrity and operates in compliance with regulations, and the comprehensive solutions encompassing entire vehicle applications provided by our solution design department."

She said, "Looking ahead to 2022, we are united in our commitment to innovation. We will increase our investment and continue to deepen and expand our collaboration with FAW-Volkswagen. We are committed to building a stronger support platform to actively support FAW-Volkswagen's digital transformation and accelerated innovation strategy at multiple levels."

Faced with a complex market environment, Avnet, a globally renowned technology distributor and solutions provider, is actively mobilizing resources through innovative business models and flexible strategic deployments to overcome the challenges brought on by production fluctuations, thereby ensuring market supply in all aspects. The signing of this strategic partnership framework agreement with FAW-Volkswagen will further deepen the strategic collaboration between the two parties in the automotive sector, deepen mutually beneficial cooperation, and jointly reach new heights in the industry.

Avnet, a leading global technology distributor and solutions provider, has remained true to its roots for over a century, meeting the evolving needs of its customers. From conception to design, prototyping to production, Avnet supports customers at every stage of the product lifecycle. Avnet is at the center of the entire technology value chain. This unique position enables Avnet to accelerate design and supply throughout the product development process, helping customers achieve faster time to revenue. For decades, Avnet has been committed to transforming technology for customers and suppliers around the world. For more information about Avnet, please visit www.avnet.com/apac.

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