According to an exclusive report by Blue Whale Technology, STMicroelectronics ("ST") intends to terminate its distributorship agreement with the publicly listed electronic components distributor Liyuan Information (Liyuan Information Technology Co., Ltd.). 

The two parties are currently in discussions regarding the termination, as well as plans for handling outstanding orders and existing inventory. During this transition period, the supply of certain ST products by Liyuan Information may be affected by the manufacturer's supply arrangements.

For a company long engaged in the agency and distribution of electronic components, the loss of an authorization from a major international manufacturer may entail more than just the disappearance of a single product line; it can also impact customer relationships, supply chain configuration, and future business development. In response, Liyuan stated that the company currently represents over 100 original manufacturers and routinely adjusts its business lines based on feedback regarding downstream demand.

Liyuan Information and ST

As a long-established, publicly listed electronic component distributor in China, Liyuan Information has maintained a partnership with STMicroelectronics (ST) spanning over a decade. ST's product offerings—including microcontrollers (MCUs), power devices, and automotive-grade chips—had long served as key lines in Liyuan Information's distribution portfolio. Market signals had emerged even before the news broke, indicating that Liyuan Information had been gradually scaling back its business related to ST; the company has now ceased providing price quotes for ST products. 

STMicroelectronics, a globally renowned semiconductor manufacturer, offers a diverse portfolio that includes microcontrollers (MCUs), analog chips, power semiconductors, and sensors, which are widely utilized in sectors such as automotive electronics, industrial control, consumer electronics, and the Internet of Things (IoT). Liyuan Information is a prominent domestic distributor of electronic components, representing a range of international semiconductor manufacturers, including STMicroelectronics, Murata, and ONsemi.

Core Business of Liyuan Information

According to the company's 2025 annual report, Liyuan Information's core business encompasses the distribution of electronic components, the development of proprietary chips, and the R&D, production, and sales of smart grid products. Its proprietary chip business includes microcontrollers (MCUs), EEPROM (small-capacity memory chips), and super-junction MOSFETs. 

In addition to distributing STMicroelectronics (ST) chips, Liyuan Information is actively developing its own line of MCUs. Through its subsidiary, Xinyuan Semiconductor, the company has focused on the R&D of its own products, most notably the CW32 series of MCUs. 

The 2025 annual report notes that, during the reporting period, the company continued to expand and refine its MCU product portfolio. New products reached mass production, and specialized modules were introduced for various downstream applications, securing customer orders and driving year-over-year revenue growth for the proprietary chip segment. This indicates that Liyuan Information's proprietary chip initiative has moved beyond the planning stage and into the phases of product promotion and commercial application. 

For Liyuan Information, developing its own MCUs enhances product autonomy and creates new revenue streams, while also facilitating the company's strategic shift from traditional component distribution toward chip design and solution provision. Moving forward, the evolution of the partnership between STMicroelectronics and Liyuan Information—and any potential shifts in their business arrangements—warrants continued attention.

Source: Official media/online news

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