LONDON The first six months of 2009 displayed a record decline of components sales through distribution in Europe according to the Distributors’ and Manufacturers’ Association of Semiconductor Specialists (DMASS) trade association.
The organization, which only reports industrial semiconductor sales and does not include the PC channel, recorded its biggest downturn since its foundation 20 years ago has.
The second quarter of 2009 ended with sales of €869 million percent, representing a decline of 32.6 percent over the same period one year ago.
The first half of 2009 ended with €1.86 billion of consolidated DMASS sales, a decline of 29.2 percent versus the first half of 2008.
“Taking into account the booking situation of 2008 and early 2009 it was clear that Q2 would end in a disaster across all regions and product groups,” said Georg Steinberger, chairman of DMASS. “Our hopes for the remainder of the year, however, are less pessimistic. Book-to-bill ratios in July were steadily high and have created some cautious confidence in the return of the market. In some cases we even expect availability bottlenecks. It will take some years, though, to get back to record sales levels of early 2007, which were 40 percent higher than the last quarter.”
Of the major regions, Italy, down 40.3 percent, and Germany, down 34.3 percent, were affected most severely, while France, down 27 percent, and the U.K., down 28 percent, did considerably 'less badly'.
Switzerland, down 38.4 percent, and Eastern Europe, down 36.6 percent, stayed below average while Benelux, down 23.6 percent, Iberia, down 28.7 percent, Austria, down 29.6 percent, and the Rest of Europe, down 17.9 percent, did better than average.
In absolute numbers, the German market ended the second quarter at €282 million, Italy at €99 million Euro, the U.K. at €80 million and France at €78 million.
Steinberger added, “The crisis goes through all regions. It is significant to see that lower cost production regions like Eastern Europe suffered more than the core regions, meaning that the amplitude of market swings on average is much higher the further down you go in the electronics production food chain. Best example for this thesis is Israel which in the first half of 2009 only declined 21 percent, 8 percent less than the EMEA average!”
All major product groups declined massively in the second quarter of 2009 compared to the same period in 2008. Only memories, down 18.2 percent, and programmable logic, down 25 percent, came in above average, all others either declined between average and 47 percent (sensors). Analog and MOS micro logic, by far the biggest product groups, declined by 30.5 percent and 37 percent respectively to €244 million and €192 million respectively.
Among the biggest losers were power, down 40.4 percent, discretes, down 38.2 percent, and standard logic, down 39.1 percent. Just one single product group showed some steadiness. Flash memories only declined by 2.4 percent.
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