Serial System says unit to lose distribution deal with Texas Instruments; may sell that business

SINGAPORE - A wholly owned subsidiary of mainboard-listed Serial System, Serial Microelectronics, will have its distribution agreement with major supplier Texas Instruments (TI) terminated on Dec 31, 2018, Serial System announced late on Tuesday (Oct 2).

The authorised distributor of electronic components added it is in ongoing discussions with TI - an American semiconductor firm - to work out the arrangements for the cessation of the business relationship, and that it is concurrently considering a potential sale of its TI distribution business.

Serial Systems noted that its TI distribution business contributed revenue of around US$442.5 million and US$707.5 million comprising 54 per cent and 47 per cent respectively of the group's revenue for the half year ended June 30, 2018 and financial year ended Dec 31, 2017.

Serial System's counter last traded at 13.3 Singapore cents.