Update: Xilinx moves to single-distributor model

A spokesman for the company said Wednesday (March 3) that Xilinx is moving forward with one global channel partner, Avnet Electronics Marketing. The spokesperson said Xilinx would also continue to use regional partners were required.

Xilinx believes the new distribution strategy will drive better field applications engineer coverage and more streamlined logistics, according to the spokesperson.

"This new, single global channel partner model will reduce redundancies within Xilinx distribution operations and is part of Xilinx's ongoing efficiency efforts," said the spokesperson, via email.

Earlier this week, Nu Horizons Electronics Corp. said it had been notified by Xilinx of its intentions to terminate a 23-year relationship with the distributor. The termination is effective June 5, Nu Horizons said.

According to Xilinx' website, Nu Horizons (Melville, N.Y.) is one of three Xilinx distributors in North America, along with Avnet and Digikey Corp. The spokesperson said Xilinx would continue to use Digikey.

Sales of Xilinx parts accounted for about 32 percent of Nu Horizons' total sales in its most recently concluded fiscal year, according to the company.

Until June 5, Nu Horizons and Xilinx will work together to ensure a smooth transition, Nu Horizons said. Xilinx has pledged to work with Nu Horizons to honor customer backlog, according to Nu Horizons.

Nu Horizons said that contractually it has the right to return all unsold Xilinx inventory to Xilinx, at Xilinx's expense, for a full refund of the original purchase price. As of Feb. 28, the next value of Xilinx inventories held by Nu Horizons was $41.2 million, the company said.