LONDON With a sales growth of almost 20 percent, the second quarter of 2006 has been another positive surprise for the European semiconductor distribution market.
While the first quarter of 2006 may have been very encouraging for the European semiconductor distribution industry, but the 2nd quarter ended as a huge and positive surprise, according to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists).
Consolidated industrial semiconductor sales in the three-month period from April to June 2006 grew by 19.6 percent over the same quarter of 2005. In actual numbers, DMASS reported sales of €1.4billion while the first half of 2006 showed a consolidated sales growth of 18 percent to a level of €2.8billion.
“2006 starts as an extremely positive year for semiconductor distribution, and we are close to the record levels of 2000 in revenues. Similarities to 2004, when the 2nd quarter reached the same level as the seasonally strongest 1st quarter, are obvious. Unfortunately in 2004, the second half of the year flattened out pretty abruptly. Also, signs from the semiconductor OEM market are not encouraging. There, the sales trend does not come close to distribution performance at the moment, which has us worried about the sustainability of the current trend. Certainly a good reason to closely watch bookings and inventories,” said Georg Steinberger, chairman of DMASS.
Germany again outperformed all the other regions, showing a year/year growth of 25.8 percent to €438million. With €193million (+15.5 percent) Italy again claimed second spot, followed by the U.K. & Ireland (+13.7 percent) with €158million and France (+11.2 percent) with €130million.
Among the smaller regions and countries, Russia, Israel, Denmark, Czech Republic and Sweden grew fastest, between 37.3 percent and 23.3 percent. All other countries were growing between 21 percent (Norway) and 1.4 percent (Hungary).
“The growth in all regions was substantial in the 1st half of the year, only Finland and Hungary seem to suffer from business transfer issues within their strong contract manufacturing market segments. Germany continues to be the driver among the big four and hopefully will remain in that role,” said Steinberger.
Analog sales grew 26.3 percent and MOS micro grew by 24.5 percent while sales in programmable logic, memories, discretes and opto increased slightly below average – between 18.4 percent and 15.3 percent. The two largest product groups, standard analog and microcontrollers, grew by 28.8percent and 22 percent respectively. The highest growth rates could be found in microperipherals (49.2 percent), digital signal processors (43.4 percent) and SRAMs (37.6 percent).
“The solid growth across the product ranges, but more specifically in the major categories Analog and MOS Micro shows that the trend in the last three quarters was really driven by the entire industry and not a specific market segment,” added Steinberger.