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European Semiconductor Distribution (DMASS) Keeps Growth Momentum in Q3/2018

DMASS reports 6.3% growth in semiconductor distribution for Q3/CY18. Growth ranges vary by region and country. Major currency effects. Significant variation by region. Smaller countries and Eastern Europe increase faster than key regions. Major product groups struggle.

London, November 9, 2018 – So far, 2018 has proved to be a healthy mid-single-digit growth year for the European semiconductor distribution industry. With product shortages and price increases continuing through the summer, Q3/2018 ended, according to DMASS Ltd., with 2.3 Billion Euro of sales, an increase of 6.3% compared to 2017. The first nine months of 2018 showed exactly the same increase of 6.3%, to 6.91 Billion Euro of sales.

Georg Steinberger, chairman of DMASS: “Compared to the double-digit projections we keep seeing for the total European semiconductor market from WSTS and others, European distribution does not seem to enjoy the same dynamics. However, most of their total projections are in US Dollars. Stated in US Dollars as well, DMASS grew by 14% in the first nine months of 2018.”

By country and region, the growth spread in Q3/2018 is rather large, between +41% and -17%. Of the major regions/countries, Eastern Europe and Benelux led the pack, while Germany, Austria, Russia and Nordic trailed the average growth. In numbers, Germany grew by 2.4% to 700 Million Euro, Italy by 5% to 193 Million Euro, the UK by 9.5% to 166 Million Euro, France by 9% to 155 Million Euro, Eastern Europe by 15.6% to 375 Million Euro and Nordic by 3.2% to 189 Million Euro.

Georg Steinberger: “After 9 months, it shows clearly that countries with a rather huge contract manufacturing focus are growing significantly faster than the major countries in Western Europe. And most of these contractor countries are in the East and to some extent the South of Europe.”

On the product side, growth rates were widely distributed, too – between -17% and +45%. Similarly to Q2, commodities like Discretes and Standard Logic did exceptionally well, while the key areas Analog and MOS Micro trailed the trend – although for different reasons – and Opto products actually decreased. Discretes grew by 23.5% to 141 Million Euro, Power Discretes by 12.1% to 240 Million Euro, Sensors by 11.4% to 56 Million Euro. Opto on the other side shrank by 2.7% to 210 Million Euro. Analog ICs grew by 3.4% to 678 Million Euro, Memories increased by 9.9% to 189 Million Euro, MOS Micro by 3.7% to 466 Million Euro, Programmable Logic by 6.8% to 147 Million Euro, Standard Logic by 9.9% to 40 Million and finally Other Logic (ASSPs etc.) by 11.4% to 128 Million Euro.

Georg Steinberger: “What is clearly visible from a 9-months-view, is that a group of commodities did really well, while some areas like LEDs, Analog and “older” MOS Micro technologies suffered. In the MOS Micro arena it seems that MPUs and higher end MCUs are taking control, while the Analog field is seeing former distribution business being handled by manufacturers direct. For the year 2018, we maintain our position of a solid single-digit ending.”

DMASS Ltd. reports to members only new statistics on Passive Components, Electromechanical Components and Power Supplies.