Distributors see chip boost in second quarter
The market moved up sequentially by 6 percent from €2.17 billion in 1Q21.
The strong annual increase comes after 1Q21 was slightly down compared with 1Q20. The year-on-year performance reflects the dip the market took in 2Q20 and comes despite severe shortages across the range of components putting a limit on growth.
“As indicated a few months ago, the dominating questions this summer are: where to source components to avoid production stops at customers and how long will the shortage last? In both cases the answers are pretty much open. Predictions on the shortage longevity range from anywhere between right after this summer to way beyond the summer of 2022. The unknown in that case is not production, as new capacities will not come online any time soon, but the more than fuzzy demand from the customer side,” said Georg Steinberger, chairman of non-profit DMASS.
Germany, France, Israel and Russia underperformed the continental average while the UK, Italy, Eastern Europe and the Nordic countries outperformed the average.
Germany, the largest market, was up 15.1 percent with sales of €614 million; Italy with €212 million was up 30.4 percent; the UK with €167 million was up 37.3 percent; France at €149 million was up 19.8 percent.
Eastern Europe bought €403 million of chips via distribution, up 44.1 percent on a year before, and the Nordic countires were up 28.4 percent to €180 million.
Next: Growth by product category
By product type the strongest sales growth was in discretes, memories and power semiconductors with logic products the weakest and some categories even falling year on year.
Category. . . . . . . . . . . . 2Q21 sales . . . . annual rise/fall
_______________ _________ ____________
Discretes . . . . . . . . . . . . . . €139M . . . . . 58.0%
Memories . . . . . . . . . . . . . €214M . . . . . 49.0%
Power . . . . . . . . . . . . . . . . €282M . . . . . 41.6%
Sensors . . . . . . . . . . . . . . . € 66M . . . . . 37.9%
Optoelectronics . . . . . . . . €222M . . . . . 33.2%
Analog . . . . . . . . . . . . . . . . €663M . . . . . 22.9%
MOS micro . . . . . . . . . . . . €463M . . . . . 19.9%
Programmable logic . . . . €114M . . . . – 11.8%
Other logic . . . . . . . . . . . . €109M . . . . – 4.0%
European sales of semiconductors by distribution in 2Q21. Source: DMASS.
Steinberger said: “While 2021 looks like being pretty much in the bag, the jury is still out on how long the shortage may last. The much bigger game going on here is the perception that semiconductors are the ‘new oil’ and governments need to get involved to secure access to leading-edge technology, which, if it happens, will have long-term effects on the entire semiconductor food chain and pricing. Government intervention always has a price tag that customers have to pay at the end.”
DMASS, founded in 1989, consists of 35 active members that represents between 80 and 85 percent of the total European distribution market, depending on the regions. To continuously increase its European market coverage, DMASS welcomes new membership applications from distributors and semiconductor manufacturers.
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