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European Semiconductor Distribution Market slows down through spring quarter
Time: 2019-09-04  |    |  18

DMASS reports a decline of 1% in semiconductor growth in Q2/2019. Slowdown expected after two record years. Italy, Russia and Israel struggle. Power, Analog and Logic hold up strongly. The second quarter of 2019 finally showed the long-expected slowdown of the components distribution market in Europe, largely in line with the overall market trends.


According to DMASS Ltd., the European Semiconductor Distribution Market declined 1% to EUR 2.32 billion in Q2.  Georg Steinberger, chairman of DMASS: “As stated in our last announcement, the slowdown was expected, due to weaker bookings in the prior periods, and it will continue during the year. Influencing factors split between industry-internal reasons – overcapacity in memories, long inventory tail at big customers, lacklustre sales in consumer products, suppliers taking back business from distribution and subsequent price declines – and macro-effects like trade conflicts, Brexit and economic uncertainty throughout the industry, despite excellent opportunities. Combined with DTAM to TAM changes all have an effect on continued price pressure, which overall is influencing the magnitude of the downturn we see.” 


At country and region level, Q2 displays a very disparate picture, from double-digit growth in smaller countries to double-digit decline in medium-sized markets like Italy, Israel and Russia. Among the major markets, Germany grew by 0.1% to EUR 681 million, Italy shrank by 11.3% to EUR 200 million, France dropped 3.9% to EUR 155 million, UK (without Ireland) grew by 4.2% to EUR 155 million, Eastern Europe by 4% to EUR 406 million Euro and Scandinavia by 3% to EUR 207 million. 


Georg Steinberger continues stating: “As the regional markets are very different in structure and customer nature, it is no surprise to see differences as described above. In EMS-driven markets in Nordic and Eastern Europe, all trends from double-digit growth to double-digit decline are visible in Q2, while for example the UK despite all Brexit anxiety holds up rather nicely for another quarter. The Italian market on the other hand lost 11.3% compared to last year, is negative for the second quarter and faces a long, hot summer quarter.”

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