London, UK The European semiconductor distribution market rebounded slightly in the summer quarter (July to September 2003) according to the Distributors' and Manufacturers' Association of Semiconductor Specialists (DMASS). Semiconductor distribution sales in €s in the third quarter of 2003 grew by 4.5% versus the same period last year and by 1% versus Q2/CY03. Consolidated sales were €1.07billion during the third quarter.
During the first nine months of 2003 DMASS sales have accumulated to €3.3 billion and turned from slightly negative to a slight growth of 0.6%.
DMASS Chairman Pierre-Yves Ferrard, said, “We are pleased that European distribution seems to have turned the corner to growth again. However, the upswing came from sales to the PC market only, the industrial business stayed flat and even went further down in some countries.”
Because sales to the PC market can behave seasonally, DMASS has decided to concentrate its future reporting (starting Q4/2003) entirely on the mainstream distribution market, eliminating the sales to the PC market from its quarterly reports.
Performance across the region has been patchy with Eastern Europe seeing a growth of 60% to €91million, Iberia rising 35.5% to €42million and the Rest of Europe sector which includes Israel, Turkey, Greece and South Africa growing 30% to €35million while Benelux saw a boost of 29.8% to €57million.
Among the major nations, Germany, the largest European region reported sales up 16% to €348million, which represents over 30% of the DMASS total. Among the major regions, All other major markets declined: Nordic down 19.5 % to €97million, France dropping 19% to 19€100million while the UK and Ireland dropped 10% to €140million and Italy was down 7% to €124million.
Pierre-Yves Ferrard, said, “For the first nine months of 2003, we can say that Eastern Europe has been a nice success story for semiconductor distribution. And while France and the UK struggle with DTAM moving offshore, Germany seems to be the only major region to hold its stand against the tendency of production transfer to lower cost countries.”
Of the mainstream products in distribution, programmable logic grew by 9.6% to €70million and optoelectronics by 2.2% to €86million. Microcontrollers were flat with sales of €151million, discrete semiconductors (including power) declined by 3.3% to €154million, analog components, by far the largest product group went down 9.4% to €239million.
With the exception of EEPROMs, growing 11%, memories in general were reported a decline of 17.5% to €88million.
DMASS, founded in 1989, has 26 active members, a mixture of semiconductor suppliers and manufacturers and represents between 70% and 80% of the total European distribution market, depending on the regions.