DMASS sees slowdown in European disti market

While semiconductors still grew by 19.3% to 3.91 billion Euro in Q2, IP&E (Interconnect, Passive and Electromechanical) components registered a decline of 7.3% to 1.56 billion Euro. The total distribution market grew by 10.3% to 5.47 billion Euro.

Hermann Reiter, chair of DMASS commented: “The rather solid numbers compared to a record year (2022) cannot hide the fact that customer orders have continued to slow down, which will inevitably result in a weaker second half of the year. Inventories are full and need to be digested. At the same time, availability across the market has improved significantly and instances of components shortages, while still present – for example SIC- and GaN-Devices - have reduced a lot. This is a great relief, and we hope for the return of some normality in the market. On a positive note, we are convinced that the long-term demand is not hampered, and design activities remain dynamic among all the challenges.”

With a total of 3.91 billion Euro, DMASS continued to deliver strong semiconductor revenues. Regionally, however, the differences were quite notable. While Germany, Italy, France, Austria and Turkey showed over-proportional growth and UK, Switzerland, Iberia, Nordic and Eastern Europe remained well in the double digits, Benelux, Israel, the rest of Europe stayed just positive.

In Germany sales grew 30.5% to 1.16 billion Euro. Italy posted a 25% rise to 389 million Euro. Semiconductor sales in France advanced 19.6% to 275 million Euro. UK sales rose 13.7% to 258 million Euro.

Benelux edged forward 4.71% to 142 million Euro and the Nordic region reported sales of 308 million Euro, up 16%.

On the product front, microcontrollers led the way accelerating 39.7% to 864 million Euro. Programmable logic sales rocketed 87.8% to 391.4 million Euro, and power semiconductors spurted 26% to 452.7 million Euro. Analogue remained the biggest single category logging sales of 1.08 million Euro, up 18.5%.

As IP&E were ahead of semiconductors in cyclicality, the return to normal market conditions started earlier and fell 7.28% to 1.55 million Euro.

UK IP&E sales fared best edging ahead 1.6% to 167.8 million Euro. France slipped 2% to 150.2 million Euro. Italy slumped 11.2% to 160.2 million Euro. Germany, the biggest IP&E market in Europe drooped 7% to 392 million Euro.

On the product side, Passives declined 7.14% to 623.2 million Euro, electromechanical sales slipped 8.69% to 822.7 million Euro and power supplies rose 3.6% to 111.6 million Euro.

Added Hermann Reiter: “The last two years certainly have changed a lot in our industry. The awareness of the significance of a steady supply chain has never been higher, also in circles where knowledge about our specific market is scarce. Also, the conditions of trade have turned almost from free market to delay management and to some conditions that certainly were hard to swallow. Therefore, it is more important than ever to cooperate better in the supply chain to at least mitigate the potential risks and find better solutions. The future of the components industry, while looking generally positive, depends on a variety of massive challenges that can turn the market either way. We must get prepared forthat.”