Covid-driven uncertainties make for difficult guesses: Page 2 of 2

May 14, 2020 //By Julien Happich
Covid
Slow demand, combined with general economic uncertainties, built a perfect basis for a weak beginning to 2020, only to be aggravated by the global pandemic a.k.a. COVID-19.

“Same old, same old – Germany right at the average, Eastern Europe gaining more traction, Southern Europe surprisingly resilient and the rest struggling. We have yet to see how 2020 unfolds, as usual there could be surprising effects. Also, not to be forgotten should be the fact that some DTAM (Distributor Total Available Market) has been turned into direct business by manufacturers, strongly visible in the Nordic numbers”, added Steinberger.

On the product side, the positive news is that some product areas (Programmable Logic, Opto, MCUs and Advanced Logic) were not as heavily affected as the others, while especially commodities (Discretes, Analog, Memories and Standard Logic) were impacted more. As the biggest product group, Analog ICs declined by 12.2% to 647 Million Euro, MOS Micro by 9.9% to 427 Million Euro, Power Discretes by 10.3% to 247 Million Euro, Opto by 6.3% to 202 Million Euro, Memories by 18.2% to 186 Million Euro, Programmable Logic by 6.2% to 155 Million Euro, Advanced Logic by 8.6% to 119 Million Euro and finally, Discretes by 24.9% to 114 Million Euro.

“After one quarter, the only indication of a slight trend is that commodities have struggled more than complex products, which is no surprise in a downturn and can easily change. Notable may also be the fact that MCUs have done significantly better than Microprocessors or DSPs” continued the DMASS chairman.

As for 2020, Steinberger dampens his previous optimism: “At the beginning of the crisis, it was the disruption of production in Asia that was a concern, now it is the other end of the supply chain – the customers and their uncertainties in their end markets. The loss of visibility both from a customer side and at the supplier end will undoubtedly lead to a few quarters of head scratching. While governments jump to rescue the economy, it would be wise to look at the long-needed innovation of public infrastructures for a more sustainable basis, which in turn could drive a lot of growth for the digital industry.”

DMASS – www.dmass.com

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Power, Analog and Logic hold up in market slowdown, says DMASS

 


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