Components distribution seems to be staying robust throughout 2015. According to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists), semiconductor distribution sales in Q3/CY15 grew by 17.9% to 1.86bn Euro compared to Q3/CY14. This is close to record sales in Q2/CY15, all the more surprising as the summer quarter normally shows a sequential decline, due to seasonality.
Exchange rate effects between US Dollar and Euro continue to have an influence, but a significant portion of the growth remains organic, as at the same time volume sales grew double digit.
Says Georg Steinberger, chairman of DMASS, “This will become a record year for DMASS, breaking the seven billion Euro mark for sure. Even though the exchange rate effects will disappear soon, European semiconductor distributors will continue to grow, albeit at a slower pace. We certainly will remain mindful of potential macro-effects like China, the refugee crisis or the shakeup in the automotive industry, which could easily affect further market development.”
Massive growth in almost all of Eastern Europe fuelled a huge portion of DMASS’ overall growth in Q3/CY15: Eastern Europe (excluding Russia) soared by a staggering 37.6% to 244m Euro. The UK market climbed 17.4% to 158m Euro, the same level as Italy, which grew by 16.8%. German sales grew 15.8% to 593m Euro, while the French market increased 10% to 135m Euro. Demand in Scandinavia seems to have weakened slightly compared to an outstanding first half. Sales were up 12.5% to 165m Euro, with Sweden making the running.
Comments Steinberger: “Same story as in Q2: the numbers are highly influenced by different invoicing trends per region (in Dollars instead of Euros) and like in Scandinavia and Eastern Europe by huge growth in the supply chain sector. As the Euro/Dollar comparison will become less in Q4, growth rates should normalise accordingly.”
From a product perspective, the focus was clearly on design products like Analogue, MOS Micro and Digital Logic (Other Logic) in general. At 540m Euro, Analogue components continued as the major product group and it came in right at the DMASS average growth of 17.9%; MOS Micro Logic (Microprocessors, Microcontrollers and DSPs) grew by 21.5% to 394m Euro; Other Logic (ASSPs, ASICs and other complex logic devices) increased by 32.1% to 95m Euro.
Above average growth was also seen in Sensors, up 22.4% to 43m Euro and Memories which climbed 25.1% to 150m Euro. Optoelectronics grew slightly below average at 16% to 193m Euro), however, LEDs as the lion’s share of Opto, grew over-proportionally. Discrete, Standard Logic and Programmable Logic all ended the quarter with increases between 10 and 14.5%.
Georg Steinberger: “I can almost repeat my statement from Q2 – the music in distribution plays at the sweet spots like Analog, Micros, Other Logic and high end LEDs, which account for over 60% of the total DMASS sales. A clear sign that demand creation is not just a buzzword, but a viable value proposition. It would be desirable that the market recognises this with a fairer market value for the design support investments in distribution.”
Note: DMASS only reports industrial semiconductor sales, defined as all semiconductors, excluding the PC channel.