Semiconductor distribution sales have grown by 16% to €1.86bn

A significant part of the increase is again coming from a Euro/US-Dollar swing, a 20% lower Euro drove price increases, accumulated exchange rate effect of other currencies versus the Euro and a higher valuation of transaction performed in US Dollars.

Georg Steinberger, Chairman, DMASS, commented: “Although 16% sounds like a healthy increase, we have to keep in mind that not all of it comes from higher demand or organic growth opportunities, but from financial effects. We will see this effect weaken over the course of the year. Halfway through 2015, it seems clear that European distribution will enjoy a double-digit growth across the entire year, provided no massive macro effect will drive the second half into the corner. It remains to be seen how the European export is affected by the weakening of the Chinese expansion.”

Regionally, all countries or major regions except Germany and Russia enjoyed the continued upswing, led by Israel (48%), Turkey (33%) the Nordic Region (31%) and Eastern Europe (29.5%) The major regions meandered around the average growth: UK grew by 17% to €153m, France by 18.3% to €145m, Italy by 13.6% to €183m, Nordic by 31% to €185m and Eastern Europe by over 29% to €238m. Germany, by far the largest region, only reported a 5.9% growth to €546m. Russia was the only country to report negative numbers, all due to embargo situation.

Steinberger said: “We have seen the currency effects playing out differently throughout the regions, with Italy and Germany obviously affected most by the weaker Euro. This will most probably balance out toward the end of 2015, when the difference between Euro and Dollar will become less of an issue.”

On the product side, there was a clear trend towards more complex components and lower growth of many commodity products: with 41%, other logic grew fastest to nearly €100m, followed by Programmable Logic (26% to €150m). Memories grew 16.3% to €143m, discretes by 17.1% to €105m, sensors by 17.6% to €41m, analogue by 15.3% to €543m and optoelectronics by 15% to €191m. Below the quarter average: MOS micro (13.9% to €384m), standard logic (8.7% to €32m) and power (5.3% to €171m).

Steinberger added: “In a nutshell, there is a clear difference between high end products and most of the commodities. While standard products lacked in dynamics, the higher end logic, programmable products and MOS micro products certainly thrived. When the currency effects subside towards the end of 2015, we may again see meaningful organic growth numbers at product level.”