Distributors see chip boost in second quarter

August 17, 2021 // By Peter Clarke
Europe's distribution chip sales up in second quarter
European sales of semiconductors by distributors in 2Q21 was €2.3bn, up 25.2 percent on the same quarter a year, according to DMASS

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

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