Euro component distribution sales spring surprise in Q1

Semiconductors in Q1 grew by 22.9% to 4.08 billion Euro, IP&E by a much more moderate 0.9% to 1.82 billion Euro. Q1 in total grew by 15.2% to 5.9 billion Euro.

Hermann Reiter, chairman of DMASS commented: “After Q4 of 2022 it was hard to imagine that our market will grow again, both year over year and sequentially, specifically since the slowdown in orders was visible for a few months now. The surprising revenue growth in Q1 cannot hide the reality of rather full inventories in the channel. At the same time, we share the general optimism in the European industry that the slowdown will be short. As our core business segments aren’t PCs and smart phones, but thriving segment like automotive and industrial, we are confident that after the inventory digest, demand will grow again dynamically.”

With a total of 4.08 billion Euro, DMASS delivered the highest ever reported semiconductor revenues. The growth occurred across all countries and regions although in varying pace. Of the major countries, Germany recorded the highest increase 0f 32% to 1.2 billion Euro. Italy sales rose 24.6% to 403 million Euro, sales in France climbed 22.8% to 278 million Euro. The UK was the laggard, growing at 6.4% to 244 million Euro.

Nordic region advanced 31% to 337 million Euro, and Benelux posted a 28.5% increase to 163 million Euro.

Programmable logic revenues set the pace in the product sector, rocketing 83.5% to 322 million Euro. Micros surged 36% to 871 million Euro, while other logic soared 38% to 234 million Euro. Analog sales led the way on 1.2 billion Euro, an uplift of 29%.

In the Interconnect, Passives and Electromechanical (IP&E) product sector power supplies sales grew 7.6% to 124 million Euro, electromechanical edged up 2.6% to 979.9 million Euro. Passives slipped 2.3% to 712 million Euro.

Hermann Reiter added: “The growth curves in Semiconductors and IP&E have been quite different for a while, with IP&E growth peaking a few quarters before semis.

Therefore, we have been positively surprised in Q1. What is also visible is that special components on both sides are still seeing growth peaks which may indicate a shift away from standard technologies.”

"However, the special situation in distribution, compared to a total market that sees stronger skid marks, makes a prediction difficult. Bookings have certainly decreased but not to the extent we have feared. We would expect a slowdown for 2023, but at moderate levels, and see a lot of optimism from customers for the long-term prospects of the components business in Europe, concluded Reiter”