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Supreme Electronics to tap China smart pallet market

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Supreme Electronics to tap China smart pallet market
Julian Ho, Taipei; Willis Ke, DIGITIMES [Friday 3 November 2017]

Taiwan-based Supreme Electronics, now the largest distribution agent of Samsung’s semiconductor products across the Taiwan Strait, is stepping up its transformation into a system integrator (SI) to develop new niche businesses in the era of IoT (Internet of Things). It will tap into China’s smart pallet market in cooperation with China International Marine Containers (CIMC) and Taiwan’s Innvalley Group, a major supplier of logistic pallets, according to company sources.

Company chairman Ge Jun said big data processing, cloud services and datacenters will trigger huge demand for servers in the IoT era and create bright business prospects for Supreme Electronics’ distribution of semiconductors for Samsung, but the company will make it a focal deployment in the next decade to develop SI business.

Supreme Electronics is cooperating with Qualcomm, AIMobile, TCIT, and Axalent in developing low-power Bluetooth chips and tracking technology, and integrating them into an iBeacon smart signal transmitting module, Ge disclosed, adding that SI will be a major turning point for industries in developing the massive IoT applications.

Market scale estimated at CNY 100 billion

The company expected to penetrate the transmitter markets in 17 cities in China, with each city showing a demand for eight million transmitters to support their IoT applications. In this regard, the company will team up with CIMC and Innvalley to explore the smart pallet market in China, which boasts a market scale of at least CNY100 billion (US$15.1 billion), according to Ge.

CIMC is quite optimistic about smart pallet market potential in China, where smart pallets will finally replace wooden ones which now command 70% of the market. Accordingly, the company also hopes to utilize Supreme Electronics’s distribution channels for semiconductor parts and components and Innvalley’s strong pallet manufacturing capability to explore the China market for smart pallets, according to Tao Kuan, strategy development chief of CMIC.

Logistics standardization is one of the major tasks in the 13th Five-Year Plan released by the China authorities, with the existing five billion traditional pallets in China to be replaced with new eco-friendly pallets within the next few years. Fitted with smart signal transmitting modules, the new pallets can track the temperatures of cargoes to reduce their attrition rates, thus helping customers save costs by at least 20% and boost added-value by 3-5 folds, according to industry sources.

Supreme Electronics, CMIC to jointly tap smart-pallet market in China  Photo: Fu Shihmin, Digitimes, November 2017

Supreme Electronics, CMIC to jointly tap smart-pallet market in China.
Photo: Julian Ho, Digitimes, November 2017

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Categories: Bits + chips IC design, distribution

Tags: Big Data Bluetooth China Cloud cross-strait electronics IoT Qualcomm Samsung Supreme Supreme Electronics system integrator

Topics: Trends in industrial computing

Companies: Supreme Electronics

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