European semiconductor distribution market remains strong -

European semiconductor distribution market remains strong

LONDON — Semiconductor sales through distribution to the industrial channel in Europe during the third quarter of 2004 rose 19per cent to euro1.17billion compared with last year according to DMASS, an organziation which includes both distributors and manufacturers.

Recently appointed DMASS Chairman Gary Nevison, said, “After a few difficult years, the business at last has gained some lost ground again. 2004 looks like a good year for semiconductor distribution. Unfortunately, an expected boom has not materialised,another proof that the only predictable aspect of our business is its unpredictability. Our biggest concern for the business today is not so much in the cyclical development but in RoHS and its impact on mid-term bookings and sales:”

Regionally, the strongest growth in the third quarter of calendar year 2004 again happened in Israel, Poland, emerging Eastern European Countries, with growth rates between 93% and 73% over the comparable quarter of last year.

In the Western European regions, Iberia, France and Switzerland continued their positive trends with growth rates of 41,3%, 27,6% and 24,7%. The Big Four (Germany, Italy, UK and France) stayed, with the exception of France, below average. Germany remains the biggest market, with euro342million, followed by UK euro154million), Italy (euro138million) and France (euro118million).

Nevison, added, “Eastern Europe certainly still benefits from production transfers, but it is good to see that Western European markets continue to have double digit growth potential as well.”

Product-wise, the third quarter seems to be a copy of Q2. All major product categories, as reported by DMASS, grew by double digits over last year’s third quarter. Growth leader in Q3 and for 2004 in total remained the memories with a plus of 53% – DRAMs, Flash memories and EEPROMs all grew above the average. The only other product groups above average were ‘other MOS-logic’ with a growth of 25.6% and programmable logic with 22.6%. Discrete, opto, analog, MOS micros and bipolar logic all grew between 13.6 and 16.8%. Power FETs grew 29.4%, DSPs up 26.8% and LEDs 249%.

DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists), is a European non-profit organisation which collates detailed semiconductor distribution market data on a quarterly basis by country and product groups.

The organisation currently consists of 30 active members and represents between 70% and 80% of the total European distribution market, depending on the regions.

DMASS added four new members at the beginning of 2004 – Fujitsu Microelectronics, Memec, Osram Opto Semiconductor and Sharp Microelectronics – and restated the entire year 2003 to the status of the expanded membership.

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